This is the first time that the price has fallen below this level since December 2022, and it has raised concerns that the downtrend could be accelerating.
The price of Bitcoin.com fell below 26,000 USD on Thursday, August 17, 2023. This is the first time that the price has fallen below this level since December 2022.
There are a number of factors that could be contributing to the decline in the price of Bitcoin. These include:
The global economy: The global economy is facing a number of headwinds, including high inflation, rising interest rates, and the war in Ukraine. These factors are making investors less risk-tolerant, and they are selling off risky assets like Bitcoin.
Regulatory changes: Governments around the world are still trying to figure out how to regulate cryptocurrencies. Some governments have imposed stricter regulations on cryptocurrencies, which has made them less attractive to investors.
Technological developments: Technological developments could also be contributing to the decline in the price of Bitcoin. For example, the development of central bank digital currencies (CBDCs) could pose a threat to Bitcoin’s dominance.
Experts are divided on whether this is the last downtrend performance for Bitcoin. Some believe that the price will continue to fall, while others believe that it has bottomed out and will start to recover soon.
Here are some of the factors that could support a recovery in the price of Bitcoin:
According to a 2021 survey by Statista, there were an estimated 106 million Bitcoin users worldwide. This number is likely to have grown in the past two years, as the popularity of Bitcoin has continued to increase.
Another estimate comes from Chainalysis, a blockchain analytics firm. Chainalysis estimates that there were an average of 22.5 million unique Bitcoin addresses active each day in 2022. This number includes both buyers and sellers, so it is not a direct measure of the number of investors. However, it does suggest that there is a large number of people who are actively trading Bitcoin.
The current Bitcoin bear market began in January 2022, when the price of Bitcoin peaked at $68,789. As of August 17, 2023, the price of Bitcoin is trading at around $20,000.
Historically, Bitcoin bear markets have lasted for about 2 years. However, there is no guarantee that the current bear market will follow this historical trend.
Some analysts believe that the current bear market could end in November 2023 or December 2023, with a possible bull run starting between the end of 2024 and early 2025. However, other analysts believe that the bear market could last longer, possibly until 2024 or 2025.
Here are some important facts about bear markets:
A bear market is defined as a decline of 20% or more from a recent peak.
Bear markets are typically accompanied by economic recessions.
The average length of a bear market is 289 days, or about 9.6 months.
The average bear market decline is 33.5%.
Bear markets can be difficult to time, so it is important to have a long-term investment horizon.
There are a number of factors that can cause bear markets, including:
Rising interest rates
There are a number of strategies that investors can use to weather a bear market, including:
Rebalancing your portfolio
Buying stocks on the cheap
Investing in defensive stocks
Here are some of the important factors about bull markets:
Stock prices are rising. This is the most obvious characteristic of a bull market. Stock prices typically rise by at least 20% from their recent lows before a bull market is confirmed.
Investor confidence is high. Investors are more willing to buy stocks when they are confident about the future of the economy and the stock market. This confidence can be driven by a number of factors, such as strong economic growth, low interest rates, and positive corporate earnings.
The economy is growing. Bull markets often coincide with periods of economic growth. This is because economic growth leads to higher corporate profits, which in turn drives up stock prices.
Low interest rates. Low interest rates make it cheaper for businesses to borrow money and invest, which can also lead to economic growth. Low interest rates also make stocks more attractive to investors, as they offer a higher potential return than other types of investments, such as bonds.
Strong corporate earnings. When companies are profitable, they are more likely to raise their dividends and buy back their own stock, which can also drive up stock prices.
Positive economic news. Positive news about the economy, such as strong GDP growth or low unemployment, can also help to boost investor confidence and support a bull market.
There are many investors who believe that the bull market is on. Here are a few of them:
Jeff Gundlach: Gundlach is the CEO of DoubleLine Capital, a fixed-income investment firm. He has been bullish on stocks for several years and believes that the bull market will continue for at least another few years.
Jeff Gundlach, CEO of DoubleLine Capital.
Bill Miller: Miller is the founder and chairman of Legg Mason Capital Management. He is a well-known value investor who has beaten the S&P 500 index for 15 consecutive years. He believes that the bull market is still in its early stages and that stocks will continue to rise in the years to come.
Bill Miller, founder and chairman of Legg Mason Capital Management.
Michael Burry: Burry is the investor who made a fortune by shorting the housing market before the 2008 financial crisis. He is now bullish on stocks and believes that the bull market will continue until at least 2025.
Michael Burry, investor
Ray Dalio: Dalio is the founder of Bridgewater Associates, the world’s largest hedge fund. He is a cautious investor, but he believes that the bull market is still in its early stages and that stocks will continue to rise in the years to come.
Ray Dalio, founder of Bridgewater Associates
Warren Buffett: Buffett is the CEO of Berkshire Hathaway and one of the most successful investors of all time. He is not always bullish on stocks, but he has said that he believes the bull market is still in its early stages.
Warren Buffett, CEO of Berkshire Hathaway