After being reined in by the Bitcoin bears, the world’s favorite crypto, Bitcoin has broken the shackles and is ready to breakout. Bitcoin has recovered to reclaim the $21K mark after staying above $20K for most of the week. The fight Bitcoin Bears vs. Bitcoin Bulls is truly on; let’s see how it unfolds by looking at the events of the recent past.
Bitcoin Surges, Investors Hope for $24K Mark Soon
Bitcoin surged to $21,988, a price spike of 7.84%. The psychologically crucial $22K mark is also on the horizon as the market capitalization of the king crypto has risen by 13%.
If Bitcoin maintains this momentum, it will be considered its best phase since it hit the All-Time High.
(ATH) of $69K in 2021. But Bitcoin bears can have other ideas.
Bitcoin’s price rise is not an aberration in the cryptocurrency world. Other cryptos such as Solana, Avalanche, and Bitcoin’s biggest competitor Ethereum are also showing progress.
At this moment in time, cryptocurrencies are firmly on their way towards a combined total crypto market cap of $1 trillion.
Many believe that BTC cannot get back to its previous high point of $24K because of a lack of trust after the famous staking platform Celsius collapsed and Terra Luna was wiped out.
Despite its rapid growth, Bitcoin is still struggling to return to its previous high points. Even if we consider 2022 only, the price is 50% down compared to its YTD high.
Ben McMillan, IDX Digital Assets’ CIO, opined that risky stock markets like Futures and Margins are experiencing high volatility. Therefore, crypto trading is higher.
Most crypto investors are longing for the next Bitcoin bull run and holding on to their Bitcoins with dear life.
Why Bitcoin Could Frustrate Bulls and Bears in 2022?
As there is no clear pattern to Bitcoin’s price development in 2022, it could frustrate both Bitcoin bears and bulls. While the Bitcoin bull market leads to excitement, Bitcoin bears lend it credibility. You see, the price of Bitcoin at $69K in 2021 was not normal. It was all hype. So, the market was expected to crash. But with Bitcoin bears entering the market, we are seeing crypto behave like stocks. Once the Fed starts easing off on the crypto party, we will see it mature in a way never seen before. But for now, both Bitcoin bears and bulls will stay frustrated due to a lack of certainty in the market.
The current BTC rise of 13% brings a massive sigh of relief to crypto investors who lost their faith. But the Bitcoin bears and bulls fight is genuinely on with no clear winner in sight. The bears are maintaining a stranglehold as the crypto market is experiencing extreme fear (according to the Fear and Greed Index). However, the market still does have the potential to explode if the Federal Reserve and US Sec start easing off.