The recent crypto crash has not been kind on any cryptocurrency, let alone Bitcoin, and that is why there exists such as huge panic everywhere, and investors are having second thoughts as well. These are not the regular investors that are affected by the sudden fall of the market as the retail investors too are a hard target for the volatility of the cryptocurrencies, especially Bitcoin. But the trends are changing, or so these were before the crypto crash, and this is where the institutional traders started to have some interest in cryptocurrencies and other digital assets.
Bitcoin has not recovered above the $40k price point and has been stranded between $35k-$40k but not above this limit. This is nothing compared to the loss and resentment the traders did feel when Bitcoin started its descent from its all-time high and then ended up in this vicious crypto crash. There is a shaken or disturbed pattern in the traders’ behaviours about buying and selling crypto assets.
The long traders are supposed to buy the price dips and continue even in times of a price boom, but the short traders are supposed to look for an opportunity, hold the crypto for the time being and then chip in all of their crypto stashes when the situation seems to be earning them a solid profit.
Bitcoin might have to Hang in the Balance a Little Longer
But the recent crypto crash has changed the understanding of the world with both short and long term investors. The long term investors are buying the dip, and so are the short term investors, and the short term investors are holding onto their crypto stash even if they are making a handsome profit; it is clearly puzzling and very out of the blue.
The main reason might be such a vicious hit that Bitcoin has taken in the recent crypto crash. And it is not only the changed approach of the traders, but the volatility, the recent crypto crash, and the change of institutional attitude towards Bitcoin adoption all that have to play a significant role in this.
If things are not coming back to normal anytime soon, such as the behaviour of the traders towards the market and the adoption rate of crypto being pumped again by institutions, then it seems that Bitcoin might not be able to start its ascend towards an all-time high let alone passing the $40k limit.