Over the past few days Bitcoin has been subjected to some very strange behavior, although there doesn't seem to be much explanation as to what's going on right now, the world's largest cryptocurrency has been dogged by the sell-off for the past three weeks, and yet it's moving In the range of $8,100 to $8,800, this is due to the uncertainty towards cryptocurrencies and the absence of the catalysts and drivers supporting this market.
Analysts believe that the crypto market XM Arabia It suffers from a lot of volatility, which is often sharp and no one can expect it, which loses a lot of investor confidence, especially since digital currencies still lack many important basic and regulatory aspects, and this is considered one of the biggest problems facing cryptocurrencies that collapse quickly and achieve great gains as well. .
At the end of last October, Bitcoin dropped significantly to trade in the $7,500 range, affected by the disappointing opening of futures contracts launched by the Bakkt exchange, as well as the testimony of Facebook CEO Mark Zuckerberg about Libra, a project Cryptocurrency proposed by Facebook.
At that time, the expectations of analysts and market experts indicated the continuation of the bearish market for the bitcoin and its abandonment of the $ 7000 level, in light of the intensification of selling operations and weak investment demand to buy the currency in the absence of support for the currency.
But what happened deviated from all analysts’ expectations, as the bitcoin rose and reached its highest level in five weeks at $10,350, supported by positive comments by Chinese President Xi Jinping regarding blockchain technology, as he said that the blockchain has the ability to revitalize the Chinese economy and restore the economy. Building infrastructure and urging his country to take advantage of this new technology.
Bitcoin prices were also supported at the same time by the rise in the number of future contracts by the Bakkt exchange that eventually reached a value of more than two million dollars. It is almost over a month before the currency can regain its rallying potential.
However, Bitcoin is back in the bear market once again, having lost hundreds of dollars of its price and is currently near the $8,200 level.
It is strange that the coin is falling back into negative territory considering all that has been done to improve it over the past month, but you should remember that we are dealing with Bitcoin and it is one of the most volatile assets as mentioned earlier, and no matter how high the coin appears to be this A problem that can never end.
At the same time, a number of well-known investors are still insisting that Bitcoin will reach fantastic levels in the coming years, and if we assume that this will happen then the currency will surely fall very fast and very dramatically.