What is Behind Bitcoin’s Bearish Phases?

In a single day, at the beginning of 2022, a lot of news came out that seemed to be a danger for Bitcoin; China continues to promote its digital crypto, and the US Securities Exchange Commission does not want to approve some ETFs. Numerous platforms, such as robbo-ai.org, make it both simple and secure to trade Bitcoin.

In addition, the British parliament is asking for more regulations, without leaving aside the measures to increase interest rates by the FED and the war between Ukraine and Russia.

But the question would be, did this news impact the price? The answer is yes, but in reality, the use of digital currencies has not disappeared; everything remains the same, just with different prices. For example, China and cryptocurrencies, which have been banned for months, are still on the market similarly.

The only natural effect of the news on the market is to generate fears, which, as we have seen for months, the whales take advantage of to lower the market price.

On the other hand, there is more and more hope as Bitcoin veterans accumulate more and more Cryptocurrencies, which tells us that they are waiting for a bullish move. 

What is happening in the market? The reality of the market

The news does not change anything in the market; it just makes noise; it does nothing more than talk about a pattern in the distribution of Bitcoin. However, one could speak of manipulation since, behind the downward trends; the whales are trying to manipulate prices down to buy at cheaper levels and after that.

When the price rises again, more profit is made, and it is sold at a higher price, generating uncertainty and mistrust among the masses that are small investors.

Accomplishing that, they panic, so the fear arises that the masses will probably sell their Bitcoin, and the dilemma lies therein.

The current question would be, why did the price of cryptocurrencies fall? Bitcoin’s crash comes after news reports showed that US job growth slowed in November 2021, triggering a series of Fed actions that no doubt hit the digital market.

The US economy has only added 210,000 new jobs out of the 550,000 expected to date so it could be in trouble.

Another issue that could have influenced Bitcoin’s falls could be the collapse of almost 8% after an alert for the discovery of a new variant of Covid-19 in 2022, potentially resistant to vaccines, considering that interest in the risk in favor of safer assets is assumed, such as government debt, the euro, and the dollar.

bitcoin collapses

Many experts indicate that the impact of the fall in 2022 was expected. However, since June, what most influenced its value was several statements without considering the effect this would have on cryptocurrencies; the effective implementation of the proposal had significant consequences.

On the other hand, the government of El Salvador purchased more than 400 bitcoins to install Bitcoin City.

To this, we add the fiscal decisions that the United States Government has taken and the increase in inflation. Creating a negative impact on bullish bitcoin trends; We can only hope that the markets calm down and generate better results during 2023 for the traditional and digital market in general.

Conclusion

What caused Bitcoin and other cryptocurrencies to start the year in the red is overwhelming. With significant price declines throughout 2022, analysts and investors noted that the drop represented a setback in the price of digital currencies.

Bargain hunters are often on the prowl, on the cusp, to jump in at any time to take advantage of the lowest price of crypto assets.

Because everything points to the end of a year in which the most prominent cryptocurrency in the world lost around 50% of its value, an impact that could last for several more months as if to say that the order of the smartest for new purchases has already been served possible.

Only that it has shown an increase that reflects steady growth, but an unexpected reversal, worries investors so much that they take the risk of bitcoin’s volatility, and this is reflected in the Fear and Greed Index, an indicator that measures the state of the general mood of the market, which marks extreme fear. Of course, the recovering bullish trend may continue, and the panorama will change; undoubtedly, it is the greatest expectation.