Bitcoin drops below $ 30,000, raising fears of another cryptocurrency winter
Customers use an automated teller machine (ATM) at a kiosk in Barcelona, Spain on Tuesday, February 23, 2021.
Angel Garcia | Bloomberg | Getty Images
Cryptocurrency’s winter history resumed as Bitcoin fell slightly below the iconic $ 30,000 price point on Tuesday. The sharp drop in other cryptocurrencies such as Dogecoin and XRP over the past 24 hours is not helping.
However, experts tell CNBC that Bitcoin’s fundamentals are good and that market conditions in 2021 are very different from the last major cryptocurrency crash in 2018.
“It’s a far cry from the bear market, and only traders are crazy about the technical aspects of trading volumes and pricing behaviors found on the exchanges,” said Willy Wu, a popular on-chain analyst and statistician. It was.
The rise in Bitcoin over the past 12 months has a lot to do with millionaires and companies buying large amounts of Bitcoin. Growing interest from leading financial professionals has not only reformed Bitcoin’s image, but has also helped generate supply shortages and drive up token prices.
But since the price of Bitcoin Summit over $ 63,000 During the month of April, The past few months have been tough for the world’s largest cryptocurrency.
A nationwide crackdown on Chinese Bitcoin miners is certainly unnecessary.
“The recent news of stopping mining in China is very reminiscent of China every few years. Banks have banned the use of Bitcoin, but they haven’t. Such spills are never seen before, ”said founder Darin Finestein. Blockcap, one of the largest Bitcoin mining operators in North America.
More than half of the world’s Bitcoin miners are in China, and Beijing has revealed they want them. May the government Strict repression Bitcoin Mines and trade, what is called the “great mining migration” begins.
“Much of the momentum behind the Bitcoin price decline is due to recent mining moves in China that have driven global hash rates down,” said Quantum, a specialist in financial and market research and analysis. cryptocurrencies. Economic analyst Jason Dean said.
“Long-term Bitcoiners see this as a very positive move for the network, but short-term traders are taken aback by the uncertainty.”
the flow, Index of fear and greed Shows 10 readings indicating “extreme fear”.
“Markets are often driven by momentum that can overwhelm fundamentals, and current sentiment seems to reflect what we’re seeing here,” Dean said. ..
But Dean and others think this is unlikely to be the start of the so-called crypto winter. Instead, they predict that we are heading into a period of overreaction that will eventually mend itself.
Matty Greenspan, Portfolio Manager and Founder of Quantum Economics, said, “The industry has a lot more utility, adoption and diversification than in 2014 or 2018.”
Bitcoin bulls claim that underlying Bitcoin assets are much stronger in 2021 than in the last bear market of 2018.
“It is the flawless security of the bitcoin blockchain for a decade, the wide range of utility of Bitcoin and the level of adoption that establishes the intrinsic value of Bitcoin,” said one Bitcoin-focused company. Alyse Killeen, Founder and Managing Partner of Stillmark, explained.
The last point is particularly important: Bitcoin adoption is at a loss, creating and strengthening a large group of users who believe in the value of currency.
“The fundamentals of all networks are optimistic, and most importantly, we are always proud of the strong growth of new users,” Wu said.
Bitcoin is also recent Major upgrade locked for the first time in 4 years, Promising additional features, privacy and efficiency.
In the short term, Bitcoin believes cryptocurrency prices will stabilize at even higher price levels than previous highs.
Auston Bunsen, Co-Founder and CTO of, said: QuikNode provides blockchain infrastructure for developers and businesses.
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