A number of moves have occurred in the crypto market lately, which is why many investors are looking for methods to mitigate the losses caused by Bitcoin’s bearish streak. However, more than COVID-19, there are also other variables that altered the price of the token in the market.
Certainly, these aspects have been little talked about, since many have focused on the pandemic. However, although what is happening globally may be regrettable, this does not mean that the market should be one of bears until control of COVID-19 is achieved.
Therefore, from CryptoTrend we have decided to talk about what have been the other factors that have affected Bitcoin.
What happened to Bitcoin?
Stock markets in the United States, Europe and Latin America fell along with Bitcoin
Now, beyond the topics discussed that relate Bitcoin and cryptocurrencies to the pandemic that is embracing the world, there are also changes in the stock markets and financial markets. Which have dragged Bitcoin at really incredible prices.
Latin American stock markets were also brutally hit by the global economic crisis. In Argentina, the Buenos Aires stock exchange lost 13.75%. Then there is the Colombian stock market, which contracted 10.53% with the presence of Black Monday. Finally, Brazil, which closes with a fall of 12.10%.
Regarding Bitcoin, it registered one of the largest losses it has had since 2017. This figure decreased more than 50% of its value, although Bitcoin has found itself with the support of 3,800 USD. However, it could break and later the support of 3,200 USD would remain. However, this situation has remained in the past.
Currently, Bitcoin is in a possible recovery, and in order to achieve a higher figure, it must trade near $ 6,300 and convert this amount into support, to later exit this bear trend.
Loss of confidence or Coronavirus?
Certainly, the Coronavirus was not the only reason why Bitcoin fell in price, with the movements in the market during the pandemic many investors lost confidence in BTC, due to the great instability that it presented.
This was appreciated when sales volumes increased on multiple platforms, which is clearly a sign of mistrust.
However, Bitcoin as a cryptocurrency and asset, should regain its price soon, and more with the approach of Halving. Therefore, selling is a desperate action that some investors take.
The greater the number of BTC tokens sold, their price will decrease, because there will be a lot of supply in the market. Which will force users to have to decrease prices, causing as a side effect that Bitcoin continues to drop in price.
It was just a bad streak: BTC recovers after Halving
This is what we all want to believe, particularly big investors. Since, as the big picture is displayed, it is possible that Bitcoin is only preparing for Halving. Which is getting closer every day and will surely cause an increase during the following months of the year.
However, the mining difficulty is about to increase and it is estimated that for the following weeks mining will be more complicated. This can be reflected in the future in two ways:
- Mining difficulty increasing and miners withdrawing from the market as mining is not profitable. Likewise, a decrease in the price of Bitcoin and the declining crypto market.
- A new boost to the BTC price, which will spark a new bull trend, ideal for motivating cryptocurrency miners and stabilizing the market.
conclusion
In conclusion, since several experts have already made their predictions, many believe that it was only a “bad streak” for Bitcoin, due to a large number of factors. And that with Halving, BTC will become stable again. Without further ado, it remains only to wait and analyze the next movements in the market.
