At the moment, the price of Bitcoin (BTC) is creeping close to the $30,000 mark. However, it has been unable to hit the $32,000 mark. It has been almost 15 days since the trend has been taking place and Bitcoin has been unable to reach the benchmark.
The analysis shows that from the start of the year until now, the trading price of Bitcoin has plummeted by 37%. Although it seems that Bitcoin is the only cryptocurrency facing a downtrend, it doesn’t come close to the losses incurred by the tech companies.
The tech companies enlisted through the US Stock Exchanges have been facing a downtrend for several weeks. This has led to huge losses for the tech companies and each company’s valuation is several hundred billion and for some, in trillions.
Major Tech Companies Facing Downtrends
If we look at the same period for the tech companies, we see that the worst performances are demonstrated by Cloudflare, Netflix, Snap Inc., and Shopify. The drop rates of these companies are 62%, 70%, 73%, and 76%.
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Investors to be Less Concerned with the Bearish Trend
Although Bitcoin is currently experiencing a bearish trend, investors should not be much concerned about it. They do not have to worry about it much, keeping in mind the annualized volatility of Bitcoin which stands at 79%.
Surprisingly, the “Fear and Greed Index” for Bitcoin seems to be telling a different story. On a scale of 1 to 100, the index is currently sitting at 8. This is the lowest scale Bitcoin has witnessed since 2020.
The Impact of Bad Conditions Due to Macroeconomic Pressure
It’s been a while since the macroeconomic pressure has been building up and the situation has been worsening. As a result, the investors fear for their money and have started adopting treasuries and the US dollar to find shelter.
The economy has been under great pressure no matter the part of the world. Each country or region has been impacted by the economic pressure where the inflation rates and the interest rates are on the rise.
Due to the very nature of Bitcoin, people do not consider it to be a reliable asset. Instead, they consider it to be a risky asset. Therefore, Bitcoin is finding itself in a bad situation where investors are refraining themselves from investing in Bitcoin. This is what has caused the trading price of Bitcoin to feel the pressure.
Bulls Expect Bitcoin to be above $40,000
Bitcoin’s options expiry is due to take place on May 27, which is in the form of open interest and was valued at $1.81 billion. However, the value will now be much lower than the $1.81 billion figure. It is due to the 26% loss Bitcoin has incurred in the past 30-days.
It is feared that if the price of Bitcoin stays below $30,000, the bets placed by the investors will become worthless. Therefore, the bulls may try hard and push the price of Bitcoin higher, bringing it close to $40k. This way, their bets will materialize with the best possible outcome given the current circumstances.