Early this week, Bitcoin dipped as low as many feared. For the first time since January 2021, the largest cryptocurrency by market volume fell below the $30,000 level to the dismay of many investors. Fears of a crypto winter have once again been reignited, even if experts believe that it’s not time for a panic fire sale.
Cryptos are still a new asset whose price is very volatile. It will be some time before the market can consolidate, and the drops represent a great way for investors to check the market out. Shortly after the sharp drop, Bitcoin has consolidated, now hovering over the $34,000 mark.
A Steady Slide
The latest price drop isn’t anything new. Bitcoin has been sliding for a while now, and it’s no coincidence that the price drops come at the same time with China’s crackdown on cryptocurrencies. The non-green mining solutions are making things even harder, so it’s no wonder that Bitcoin has dropped over 50% in recent months. Many have been proposing green solutions for miners, but nothing has materialized so far.
Still, experts are once again pointing out that we’re far away from a bear’s market. Bitcoin was bearish for the most part of 2019 and early 2020 before bulls took over. From that point on, its price has broken numerous records, but lately, it’s been a serious slide.
The good news is that Bitcoin adoption is greater than ever. More and more investors are flocking to the market, and that’s why price rebounds are very common. After dipping just below $30,000 early on Tuesday, Bitcoin has rebounded pretty strong, currently going for over $34K.
It lost nearly 50% of the April all-time high of $64,829, the same day that Coinbase went public. After the recent array of dips, Bitcoin is only up 3% this year. However, it’s not time for a fire sell. On the contrary, buying the dip and sticking with it could yield much better results in the future. That is if you don’t mind the volatility.
Since history tends to repeat itself, the current situation is very similar to 2017. As soon as exchanges began listing Bitcoin futures, it burst like a bubble. While BTC didn’t reach new heights for 3 full years, it managed to double its price in less than a year and keep the support level steady.
A Crypto Winter?
Jason Deane, an analyst at Quantum Economics, says that the fears of a crypto winter coming are unfounded. Short-term traders are afraid of losing their investments, but long-time Bitcoin traders know that this is a great opportunity. Currently, the Fear and Greed Index is at a maximum of 10, but there’s no reason to be afraid. Crypto markets are often driven by momentum, and everything can change in a day or a week. All network essentials are currently in bull mode, and adoption is at an all-time high. Bitcoin’s price slips will eventually be great in the long run, so it’s not time to let fear take over.