This year’s great event in the crypto world has been the bullish rally of the first weeks. Which positioned the price of Bitcoin around $ 10,000 per BTC once again. However, the optimism that filled the markets just a few days ago seems to have been forgotten, as Bitcoin quickly loses its value.
The optimism in the market Bitcoin
For several weeks, optimism has soaked the crypto market. As the price of Bitcoin, and with that of most of the world’s cryptocurrencies, rose rapidly to around $ 10,000. In a bullish rally that was expected to continue indefinitely.
The same, according to analysts, was driven by three main factors. Starting with the unfortunate expansion of the coronavirus in Chinese territory. Which is causing great uncertainty in the world market, given the ravages that the disease would already be causing in the Asian economy.
Which drives the world’s great investors to look for secure financial assets in which to locate their capitals. In order to protect them from a financial collapse that erodes their value. Occupying Bitcoin, a place in the list of value reserve assets sought by investors in times of uncertainty.
To this would be added the proximity of halving in the Bitcoin Blockchain. Which is expected to increase the value of the cryptocurrency, by decreasing the amount of it that is issued daily, and therefore increasing its shortage. What would also boost speculative trends in traders. Taking them to buy Bitcoin so as not to lose the possible profits they could get from the bullish rally
The end of the rally
However, it seems that the upward trend of Bitcoin has come to an end. As the price of the cryptocurrency plummets, along with hopes that the rally will reactivate soon. Facing traders with a completely new context.
A situation that is very well delineated by the race within one of the most important cryptocurrency exchanges in the world, BitMEX. Which, in the last hour has witnessed a liquidation of positions by its traders for more than 190 million dollars. As they try to avoid suffering losses due to the fall of the crypto market.
Thus, it would be clear that the general optimism of the first days around the continued increase in the price of Bitcoin has been left far behind. There is now a situation in which traders try to make a profit, or at least decrease losses, in a bearish context. Making this our Data of Today here in CryptoTendence.
International Studies student, interested in economics and international politics. Passionate about the progress of the Fourth Industrial Revolution in general and cryptocurrencies in particular.