Every year, for some reason, we hear at least a few mentions of “Christmas in July.” This mostly comes from retailers looking for an excuse to run a sale, or people simply creating a reason to get together. Well, Bitcoin has been undergoing a similar wintery season in the warmer months lately, and summer hasn’t even officially begun yet.
What happened to the proposed $500,000 price target by the end of 2021? Bitcoin’s emergence from an almost 3-year hibernation of sorts gave long-time "hodlers" and crypto lovers alike a sense of hope that maybe this time we could finally see the light and not just some short-term run-up.
It’s the skepticism for us
Bitcoin had an impressive run since last fall through April when it topped out at $64,000. That was tremendous progress, and Bitcoin showed great resilience considering the almost constant berating of fear, uncertainty and doubt (FUD) it takes from skeptics.
Since then though, and especially over the last month and a half, Bitcoin has taken a beating on the charts, losing over $30,000 or nearly 50% from its all-time high back in April. Why? Well, skepticism is the main culprit.
Elon Musk: Unofficial market maker & a lack of conviction
You can thank Elon Musk in part for the regression we’ve seen, as his questionably regulated influence on the crypto markets has weighed heavily on Bitcoin's public sentiment. But you can also give a nod to the lack of due diligence, which is what causes most investors' opinions to be swayed by the likes of Elon's waffling personal stance and obscure memes.
Let's face it: the vast majority of crypto holders probably don’t know or care what the value of Bitcoin is to them; they’re concerned if it will go up. When the waters are choppy, they flee, and choppy they are. Without a conviction in what you’re buying, FUD will keep disrupting Bitcoin's growth until it’s moved past.
So, what does the groundhog say?
As for forecasting when the end of this current bear market may finally end, no one knows, but it certainly does feel like Punxsutawney Phil saw his metaphorical crypto shadow once again.
The reality is that Bitcoin and other, smaller crypto projects could break out at any given time, and all it takes is the right piece of news. With the right endorsement from a public figure, institutional investor or business, this bear market could turn bullish very fast, or we could just as easily continue to see BTC and others get beaten down by skeptics.
(Stay tuned for next Tuesday's edition on Blockchain, simply explained).