BitcoinOne definition of a bear market is an asset priced 20% lower than its most recent high. CoinGecko data shows that BTC is currently more than 18% off the new top it hit in March.Does that mean we’re edging toward a bear market just weeks after being in a bull market? Is that possible?Rather than poking the bear, experts told As for why? War certainly isn’t helping. Things looked rosy Friday morning Eastern Time when the coin was priced at nearly $71,000. But then the The Head of research at CoinShares James Butterfill told “This was expected to push down prices—as it will push up inflation due to rising oil prices, suggesting [interest rates] will remain high,” he added. Despite being described by some investors as a safe-haven asset, Bitcoin has typically moved along with “risk-on” assets—those that jump up and down in value. When there is geopolitical risk, investors tend to avoid riskier assets and instead put money into more stable ones like gold. Analysts at CryptoQuant told Meanwhile, Bitcoin at the weekend will undergo a major change to its code: The last event was in 2020—and before it occurred, the market also experienced significant volatility, CryptoQuant research Blockstream CEO Adam Back shared his take today, noting in a Twitter thread that the current volatility is normal—“if anything this pre-halving run-up has been lower volatility than prior cycles bull-runs.”zoom out, #bitcoin at prices seen 4 weeks ago and 6 weeks ago. plus half a dozen > -30% dips are typical for a bull run. we’re at -19% from ATH a few days before halving, with a never before seen second ATH pre-halving and ETF tail wind gathering. pic.twitter.com/bbZL8ulKqu— Adam Back (@adam3us) April 17, 2024In other words, Bitcoin’s weird behavior is mirroring what it usually does every four years.Edited by Ryan Ozawa.
