Bitcoin’s price may be ‘holding up well,’ but the big picture is this
It’s not been a good year for Bitcoin, the world’s largest cryptocurrency. Less than three months ago, with BTC trading close to $69,000 on the charts, many expected the crypto to hit $100k soon. Alas, that didn’t happen. In fact, Bitcoin dipped and depreciated. And, did so very significantly.
While the last 10-14 days have seen BTC recover from its near-term lows close to $32,000, the cryptocurrency is still well away from touching its heights from a few months ago.
Understandably, this has fueled a significant query in the minds of many – Is the crypto winter here? Is the Bitcoin ice age upon us after a bullish 2021?
Ordinarily, a crypto-winter can be identified by a series of red candlesticks on the monthly frame. According to some, it might just be too early to call anything right now. Then again, the crypto-community and market aren’t really famous for cold rationality, are they?
Consider the latest data from Google Trends, for instance. After flashing a reading of 7 between 7/11/2021 and 13/11/2021, search interest for the term ‘Bitcoin Winter’ climbed to 100 last week. Whether it is here or not, a lot of people really are keen to find out.
Source: Google Trends
That’s not all. The Fear and Greed Index isn’t giving a lot of confidence either with a reading of 44, at press time. This, despite the fact that the scale has moved from ‘Extreme Fear’ to ‘Fear’ over the last 30 days.
The aforementioned datasets can be supported by the fact that of late, most are revising their initial predictions for Bitcoin. Furthermore, some are specifically suggesting there may be tougher times ahead.
Consider this – According to Huobi Research Institute, Bitcoin has emerged to become an asset that is very sensitive to changes in liquidity.
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