The largest cryptocurrency has had a challenging ride in 2022 as it continues to witness a steady decline in value. What was supposed to be a brief moment has culminated in a long bearish trend, triggering negative sentiments from investors and traders.
As a result, the BTC was thrown into its most extended “extreme fear” zone for 73 days before market pressure broke the streak on July 19. This coincides with the 19% jump in price as Bitcoin bulls find their way back into the market after the bears hold sway.
For emphasis, the Crypto Fear and Greed Index measures traders’ and consumers’ sentiments in the industry. For Bitcoin, it dropped from “extreme fear” to “fearful” on Tuesday, indicating a score of 30 out of 100.
Improved Sentiments Among Bitcoin Traders
According to the crypto on-chain metrics platform, Santiment, Bitcoin traders are beginning to change their stance on the token’s prospects. They are now waiting to experience a long-term breakout of Bitcoin in the market.
Furthermore, Santiment revealed that the average funding rate on Bitcoin is now at its highest level over the past two months. BTC’s price has risen to more than $23,600, which might indicate the fear of being left out.
Mike Novogratz, CEO of Galaxy Digital, noted that BTC’s price surge is due to renewed optimism from the crypto community. The extended days of price decline have dashed the hopes of Bitcoin holders, but things are changing. Novogratz added that he foresees a scenario where the price of Bitcoin will spike to more than $500,000 in the next few years.
The Galaxy Digital CEO points out that it is all about global economics and the adoption of BTC. He added that there might have been an obstacle on the road that hinders Bitcoin adoption, but there is no going back once it is cleared.
Bear Periods not Over
Grayscale’s “Bear Markets on Perspective” survey revealed that the current trend would likely last for an additional 250 days.
This implies that the crypto market is not yet out of the woods as far as price recovery is concerned. There is still much work to be done to reverse the industry’s decline in the coming weeks.
Echoing the same sentiment, product comparison firm Finder added that Bitcoin would decline before coming back.
The product comparison analysts at Finder disclosed that the flagship cryptocurrency would witness a price drop below $20,000. This will be followed by a sharp price increase to $100,000 and $300,000 before 2025 and 2030, respectively.
Bitcoin still has a long way to go before it reaches the full potential that its founders and supporters envisioned for it. In the meantime, given the challenges, the token is making inroads towards total recovery at a steady pace.
Experts believe that the flagship digital token will become the next reserve asset for the world once the storm is over.
Meanwhile, Bitcoin currently trades at $23,318—a significant improvement from the previous week’s performance.
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