Why is the Bitcoin market down? I know we will be bringing in many global financial happenings especially by the government and big institutions into consideration. But wait! Can it be the September trauma? Many investors just having the 'run for your life' mentality. Even you are currently very skeptical, you just believe it will be a bear shower. Answering the aforementioned question we can say traditional bitcoin investors are keeping it bearish. As I'll always say, the financial market is only a place of meeting, the decisions are literally made by people, not the market.
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It has been a red flag and there seems to be no big turning back, at least for NOW more precisely looking at the bitcoin market. As at the time of writing, bitcoin is facing a 4.5% market decline in the last seven days. Definitely we should be expecting some up trends no matter how small it may be. The week is just beginning and the coin that once had a 24/7 market stamina is mostly effective on working days courtesy of the ETF.
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If you look through this one day market chart you'll get a glimpse of what I am talking about. Here we can even see a 1.4% market increase. Can one now say it's juicy to enter the bitcoin market as a day trader on Saturday or Sunday and exit on Monday? It seems one can profit from sweeping the leftovers and grow his assets. Do your research much precisely, there are no free cheese but they'll definitely always be opportunities for those with eagle eyes. Chasing such small price descrimpanses needs a huge investment capital and for sure, there lies the one time liquidation risk.
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The one month bitcoin price chart is showing over 9% market decline. I know we are not too surprised and we are expecting more of such within this month. Let's not be too overconfident with past records anyway, the market has always proven to create new tracks. Just as I have earlier said, it takes investors who can trigger herds mentality to address this narratives. It is not easy as bitcoin is facing both internal and external factors; the myth of an always red September market and the current global economic struggles.
External factors pressure
We are really experiencing it. There are a lot of uncertainties everywhere. Maybe before reaching the government and institutional bodies we should take a look at how tech is adding to this downtrend. The rise of a fast pace and changing tech demands is putting investors in what I should assume a 'merry go round'. As we speak, it seems many eyes are literally focused on the AI industry. Can it render the former a bubble or can it in itself also be a bubble? In as much as I see a correlation between crypto and AI many are ALL in for just what it can instantly offer. Without doubts we can say there has been a market capital sharing by investors to meet up investing in both industries. Where do you think the millions and billions poured in to train AI especially are from?
The government on the other hand is not making things easier when analyzing what is going on in the US. interest rate lowering will definitely come at cost. Everyone is being very skeptical of how the unexpected can be very expected. In my view, due to a stricken US economy, any direction of The Fed will always result in market destabilization; the pressure is high for the government I must say, it is not just a 'wake up and decide' one. Those who understand the fundamentals of economics can tell much from here, there is an inflationary outburst. Looking globally, we can say, this inflationary trend is really making market decisions more deterring with investors seeking safe waters at the moment. Just like bitcoin, when the US financial health faces pressure, it always reflects almost everywhere.
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From the angle of institutional investors, there seems to be so much outflow from the Bitcoin ETF markets. This is already causing a scare as it seems literally as just a market milking process. The records in the last few days are in no way encouraging, can it be a deployed tactic by big hands to discomfort small investors just to own the entire market? Maybe we never saw this one coming but it is now adding to the entire bitcoin market health. The crypto market has always been a volatile environment yet it seems ETF that was meant to cure volatility has chosen the vice. From my views, institutional investors have played a huge role in the red market so far with liquidation upon liquidation week in week out.
This is even raising concerns of how many mining pools will be able to stand the pressure if bitcoin continues to settle below the 60K market price. How will miners afford the cost of keeping their on chain activities when mining difficulties is more energy demanding. There will be left with an inevitable sell off if it is not happening already. This is raising market fears and investors are not ready to become victims when this drops market price to new lows.
To conclude let me add, it's September 9 and the bitcoin market is behaving just as expected. September has not always been favorable to bitcoin although last year had something good to write about. The entire market is bleeding just as usual; hit bitcoin and the blood will spill into the altcoins market too. Are we entering another long market decline exception of being September? It is worth asking because much was expected after the halving that is yet to be seen. Let's hope we break the market deadlock soon, the red candles are very boring.
Posted Using InLeo Alpha
