Bitcoin bounces back after falling below 30,000, do we really need to worry about a bear market coming?
Whenever a new trend in crypto consensus emerges, the market either collectively surges or collectively plummets.
With the recent increase in cryptocurrency regulation in China, the central bank has driven major banks and payment institutions to jointly ban accounts from engaging in virtual currency transactions. Bitcoin’s price has been affected in tandem, falling even further below about $30,000 at one point, hitting a new low since June 9.
Many experts have labeled bitcoin as digital gold after the ongoing hype early last year. There were also many who referred to Bitcoin as a reserve currency, but all of that hype was just up in the air. As of May of this year, Bitcoin has accumulated a 790% gain and a 50% drop. But we also need to note that the correlation between crypto assets and investor consensus has matured and grown significantly, with the market either collectively spiking or plummeting whenever a new trend in crypto consensus emerges.
More large companies choose to add to BTC
Blockchain Capital, a venture capital firm focused on cryptocurrencies and blockchain, said it has recently raised $300 million for its fund, with PayPal and Visa among the traditional investors still showing strong interest in the crypto sector. The fund was heavily oversubscribed with a hard top cap of $300 million, thanks to a combination of strategic investors, pension funds, U.S. university endowments and family offices from around the world.
Among them are giants PayPal and Visa. according to Jose Fernandez da Ponte, PayPal’s head of blockchain, the global payments company is working to foster an ecosystem that makes digital currencies more accessible, useful and secure, adding that investing in Blockchain Capital’s new fund allows PayPal to engage with entrepreneurs to drive the decentralized economy and the future of a new wave of financial services.
In addition, Visa’s CFO Vasant Prabhu said their company is focused on improving the flow of money in all forms, whether on the Visa network or on other crypto networks. Blockchain Capital was founded in 2013 and has funded more than 110 companies, agreements and projects since then. Its portfolio includes companies such as major cryptocurrency exchanges Coinbase and Kraken, as well as mainstream DeFi projects such as Aave.
Bitcoin is still winning
Bitcoin has been taking a beating lately – both in terms of market cap and reputation. Primarily, the current price has put many of the later high-fliers in a catch-22 position. However, bitcoin will never be the first choice for people to get rich quick. Gone are the days when you could buy low and sell 1,000x later, and it’s hard to find cottage coins with those same returns. However, speculation and insane returns have never been the promise or virtue of bitcoin.
Despite the current economic downturn, its true value is increasingly being realized worldwide and I believe this technological advancement will continue to flourish. Yes, down from an all-time high of over $60,000, bitcoin will continue to fluctuate. There will be new all-time highs, and there will be crashes.
But the more adoption there is, the more stable it will become. More countries in South America and Africa seem to be enacting legislation to recognize bitcoin as legal tender. You might say they are “small and insignificant countries” – but perhaps it is because of this marginalization that they are in a position to recognize how Bitcoin can empower their currency in a world that excludes them.
Staying in the Cryptocurrency Market
Staying in the cryptocurrency market is not an easy thing to do, especially if you try to hold on to it for a longer period of time. Bitcoin has had multiple crashes since its inception, and each one has been interesting. Countless voices have been told about it being a Ponzi scheme. If you’ve been in the crypto industry for the past decade, you’ve noticed that bitcoin always makes new highs and then drops back down, finding its way up again after a while, which is the normal cycle of bitcoin’s volatility.
Many investors jumped into bitcoin with dreams of getting rich overnight. Bitcoin has been a speculative cryptocurrency from the beginning, and a large number of investors interested in joining the bitcoin speculative market are based on the idea of getting rich quick. It is not like a regular commodity or a regular stock market asset, but a completely speculative asset. For some investors, it is very difficult to gain insight into the market sentiment and real analysis of future forecasts for crypto assets.
Yet the recent crash has not devalued bitcoin in the eyes of investors; it remains a vortex of wealth and continues to attract investors. Of course, recognizing the right and appropriate time to invest is necessary. In cryptocurrencies, expect a bit of fear when you plan to invest your money. After all, its high volatility makes it a high-risk investment.
On the other hand, you need to make the right choices and diversifying your portfolio can save energy. So, while many people believe that Bitcoin may be on the decline, I see more potential.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/bitcoin-bounces-back-after-falling-below-30000-do-we-really-need-to-worry-about-a-bear-market-coming/
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