Has Bitcoin Entered a Bear Market After a 20% Decline from Its Peak?
According to Bloomberg data, Bitcoin has recently plummeted from its peak of $72,000, briefly dipping below the $60,000 mark, marking a decline of approximately 20%. This significant drop has led to discussions about whether Bitcoin has officially entered a technical bear market.
Several factors contribute to Bitcoin’s recent downturn. Continuous selling by Bitcoin miners and outflows from Bitcoin ETFs have exerted downward pressure on the cryptocurrency. Additionally, the announcement by the defunct Japanese cryptocurrency exchange Mt. Gox, which plans to begin repaying Bitcoin and Bitcoin Cash to its creditors in July, has intensified concerns about increased selling pressure in the market.
On a broader scale, macroeconomic factors are also at play. Skepticism about the Federal Reserve’s ability to quickly cut interest rates from their twenty-year highs is growing. Some analysts view the sharp decline in cryptocurrencies as a warning signal for broader risk appetite in the financial markets.
Despite Bitcoin’s drop of over 20% from its all-time high, renowned investor Peter Schiff believes that the price correction has concluded. He suggests that the bear market is still in its early stages, implying that further declines could be on the horizon.
