The Situation at Hand
The drastic drop and decline that befell the digital asset market last few weeks have left a mark on the users and investors of crypto, with crypto coins and other assets experiencing their lowest of lows and even stablecoins being affected, it’s no surprise that both old and new investor is worried.
With Bitcoin dropping lower than the $30,000-dollar mark, to LUNA experiencing one of the worst drops in value it has ever experienced, several figures that are not pleasing to any investor are coming up, and it is no wonder there is a lingering fear around the crypto ecosystem.
It is even being compared to the previous headline crash that caused major panic in March 2020. The pandemic crash in 2020 is still one of the worst that has happened so far, but right behind it is the recent one that has left most investors worried and in fear.
Though the current situation is better than last week, there is still a lot of doubt and fear. Currently, the fear and greed index has stooped to new levels which the industry hasn’t experienced since March 2020.
It has dropped down to an 8 against 14 on Monday and 28 which it was on last month. Bitcoin is barely below the $30,000 price and the entire crypto market is barely above the $1.34 trillion mark.
With all that is going on, Raoul Pal thinks that the recent happenings vary little from what was seen during the crash in 2020. He mentioned that the way the market crashed is almost similar to what is going on now.
He also shared his optimistic thought, as he said he expects the crypto giant Bitcoin to rise once again. During the last major crash, the market saw several investors panic-sell in fear of what could occur during the pandemic, which led to Bitcoin dropping by 45% in just a day.
Even with his claim, the reason why Bitcoin and the crypto market were able to make it out of the ditch they found themselves in was due to the amount of effort put in by the government to make sure it came back up.
Cryptos Next Move
Bitcoin is currently low on this week’s Relative Strength Indexes. We could see it stay at the bottom for a while but it normally doesn’t last more than a month or two.
Bitcoin going down to $20,000 is not totally ruled out, but accurately predicting the bottom price of an asset like Bitcoin is practically impossible, not even the best traders can boast of such.
Nonetheless, Bitcoin is still getting a surprising inflow since the crash.