Waiting for the Bitcoin slump to end? Here’s when the bear phase is likely to end

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The fall is largely attributed to the crackdown on the use of crypto and mining in China, except for Elon Musks’ tweets, even as digital currency comes under regulatory scrutiny increased on the part of US lawmakers.

The crypto king Bitcoin fell almost half of its mid-April peak of over $ 64,000. Amid momentary surges, the digital currency has yet to recover and maintain above the $ 34,000 mark it has been trading at since May last week. Its share of the total crypto market cap has also fallen from nearly 70% in January this year to 44% currently, according to data from CoinMarketCap. The bearish Bitcoin market, in fact, is expected to continue to advance until its market share returns to over 50%, according to a cryptocurrency expert at JPMorgan.

A healthy number there, in terms of bitcoin’s share as a percentage of the cryptocurrency’s total market cap, is 50% or more. I think that’s another indicator to watch here for whether this bear phase is over or not, Nikolaos Panigirtzoglou, analyst at JPMorgantold CNBC. Bitcoin’s relatively low market share was a negative signal indicating relatively moderate interest in digital currency, he added.

On the other hand, some experts believe that Bitcoin could hit $ 100,000 by the end of the year despite a very difficult time. Thomas Lee, managing partner and head of research at Fundstrat Global Advisors told CNBC last month that Bitcoin is currently in a very difficult situation. I think the technical image of the current term sort of doesn’t look great. The fall is largely attributed to the crackdown on the use of crypto and mining in China, except for Elon Musks’ tweets, even as digital currency comes under regulatory scrutiny increased on the part of US lawmakers.

Also Read: Crypto-Linked Email Attacks Jump 192% Amid Growing Bitcoin Buzz; ransom demands exceed $ 20 million

“The correction was long overdue and was limited to the ban on crypto in China. The correction was expected over the past two months, as money had already started flowing out of Bitcoin since its prices had skyrocketed. Historically, we are seeing a first decline in Bitcoin, followed by a rally in other coins like Ethereum and Binance etc. At this point, the market was looking for negative news that could act as a trigger. Here, China’s ban appears to be that trigger, Mudrex CEO and co-founder Edul Patel told Financial Express Online.

The suggestions / recommendations regarding cryptocurrencies in this story are from the respective commentator. Financial Express Online assumes no responsibility for their advice. Please consult your financial advisor before trading / investing in cryptocurrencies.

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