Recovery of Bitcoin

No one could have expected the tremendous reception that Bitcoin would get when it first appeared in 2009. However, it became so popular that it gained the label of King of Cryptocurrencies. Thus, it has only gone from strength to strength over the years. True, it has also been a victim of marketplace volatility, like other digital currencies. Regardless, it has always managed to bounce back. 

However, there is some uncertainty about its performance currently. This is because investors have resumed impulsive selling of digital currencies after a lull in such activities. The current wave of liquidation is the culprit, causing panic all around. Bitcoin has not remained unaffected. Its value is approaching $15,500. 

The Conflict Between FTX and Binance

Investors have become apprehensive about the cryptocurrency industry’s staying power. The reason is the confrontation between FTX and Binance, the largest cryptocurrency exchanges in the virtual currencies industry. 

Therefore, users, especially long-term investors, wonder if other digital currency exchanges might face various issues, too. After all, 2022 has not been a healthy year for cryptocurrencies. There is always the question of the rebound effect.

Confidence has been further undermined by the FTX exchange filing for bankruptcy. The company had no choice since it was confronting liquidity issues. The company’s CEO declared it had no funds to meet withdrawal requests. It needed around $8 billion in funding. 

Rumors circulated about Binance offering to purchase FTX. However, no action has been taken yet. Therefore, investors and traders strive to lessen their exposure to cryptocurrencies. They are getting rid of their tokens by selling them at lower-than-marketplace prices.

Bitcoin’s Plunging Value

Investors are not feeling too happy about Bitcoin’s pricing. Even $20,000 did not suffice to act as a healthy support level. Within just four days, Bitcoin’s value dropped by 27%. It indicates a lack of interest in purchasing the coin. After all, the pricing was much lower than the previously lowered price on June 18, 2022. 

It has not helped that Binance abandoned its deal with FTX. Similarly, FTX’s collapse has made everyone jittery. FTX also runs its business in the U.S. and operates in other countries. Thanks to its collapse, investors are unable to withdraw their funds, which may cause regulators to initiate an investigation. This event, along with compulsive selling, is bound to reduce the value of cryptocurrencies, including Bitcoin, drastically. 

Uncertainty of Outcome

Both fundamental and technical analyses agree on one aspect: The pressure on selling digital currencies, whatever the pricing, will be persistent. In other words, the current scenario will continue.

The bearish trend has not gone away, as evinced by the Bitcoin price chart. The break that surfaced below the June low suffices as confirmation. Experts believe that there is hardly any probability of a rebound. The chances of Bitcoin reaching its former value of $20,000 are slim. 

Seasoned investors believe that Bitcoin’s weakness is bound to continue. If the values approach $13,000 and $15,000, purchasers might still be able to balance the order flow. However, these values must also be consistent. Even then, it is hardly likely that Bitcoin will move towards a higher value than it is now.

If Bitcoin manages to achieve a price of $21,500, it will regain its lost glory. In turn, cryptocurrency enthusiasts will regain their confidence. After all, when Bitcoin suffers, the suffering carries over to other digital currencies, too. Therefore, when things go well for the ‘gold’ of cryptocurrencies, they will also go well for other coins/tokens. 

The structure of pricing must change. It is vital for the crypto world. Thus far, it has been the arena responsible for monetary losses and changes in mindsets. When the original sentiments regarding Bitcoin return, panic selling will also cease. Thus, the outcome of what is happening in the global marketplace remains vague. All that people can do is wait and watch!