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Cryptocurrency

Bitcoin Ends a 9-Week Losing Streak. Will This Be Sustainable?

As you already probably know, the cryptocurrency market is highly volatile, which often generates losses for investors and traders. Over the past months, the cryptocurrency market has displayed red indicators and down arrows – this shows that even the first cryptocurrency, Bitcoin is not an exception. Bitcoin has been setting high records recently, but not as consistently as many have hoped. Bitcoin suffered from a nine-week losing streak but is now back in the green. As Bitcoin rises after snapping its longest-ever streak, the question is whether it will be sustainable?

Bitcoin Ends a 9-Week Losing Streak. Will This Be Sustainable?

Bitcoin: The First Cryptocurrency

Bitcoin is the first digital cryptocurrency developed by an anonymous Satoshi Nakamoto back in 2009. The term cryptocurrency is taken from an electronic version of money, where transactions are verified through cryptography – the science of encoding and decoding information. Investors love that Bitcoin is not associated with third-party agents such as the government or the bank. All the transactions are kept on an online ledger called the Blockchain.

From the start, Bitcoin has shown positive indicators that it is indeed profitable, hence the list of Bitcoin millionaires. Since its development, more and more people have engaged in this crypto for trading. To address this newly-found demand, an entire industry centered on cryptocurrency trading emerged. Existing brokers added crypto tokens to their offerings, and brand-new crypto-specific platforms also appeared. Some of them, such as Coinbase or Binance, serve as both brokers and exchanges. Others, like Bitcoin Profit App, have taken a mediator role and act as hubs that connect traders with trusted brokers offering state-of-the-art trading software and tools.

How Does it Work?

For the majority of the users, Bitcoin is a software that allows them to complete transactions. Every transaction made is automatically tracked by a user’s computer to ensure that the data it holds is valid. This transaction is stored by a public distributed ledger known as the blockchain. These groups of data are known as ‘blocks,’ and once cryptographically ‘linked’ together, they cannot be manipulated as the pieces of data get buried.

Has Bitcoin Reached a Bottom?

Crypto investors who have seen the value of their portfolios decline significantly this year are eagerly hoping for an end to this period of depressed prices. Despite the continuous downfall of values, experts mentioned that it is almost impossible to call the bottom of the market. Analysts have been optimistically talking and predicting prices bottoming for months, and it hasn’t happened yet.

The struggle is that the current economic climate is different from the one observed last year. Compared to this year, lesser money is circulating, and crypto enthusiasts are much less willing to take risks. As the crypto market progresses, Bitcoin’s price history is also difficult to rely on as an indicator for predictions. Since this main crypto-only began in 2010, experts have a limited amount of data to utilise before drawing trends.

The End of Bitcoin’s Longest Downtrend

In the past two months, Bitcoin’s chart reeks of red flags and down arrows as it has entered a record-breaking nine weeks of consecutive losses. While Bitcoin investors had been predicting a price rebound, they had been wrong for nine long weeks. Just for this year, Bitcoin’s price is not consistent. Since January, it suffered from a -16.68% decline, followed by a 12.21% increase in February that went down to 5.39% in March. During the months of April and May, it just continued to go down, declining from -17.3% to -21.91% consecutively.

This makes May 2022 the second-worst May for Bitcoin – the first one was the Bitcoin May 2021 crash when it reached -a 35.31% downtrend value. However, June kicked off a green start to the new week, and Bitcoin has shown gains across the board in the crypto market. Investors had hope as the gains came when the Bitcoin chart printed its first green candle in 10 weeks, ending its record-long losing streak.

Is Bitcoin Sustainable Now?

Falling and rising values are common in cryptocurrency due to its highly fluctuating nature. However, the crypto industry was shocked when Bitcoin, the number one crypto when it comes to market cap crypto ranking, has shown a consistent downfall for nine straight weeks. This drop came alongside inflation concerns in the general economy, a move away from risk assets and the systematic risk from within the crypto industry.

After Bitcoin broke its losing streak, investors have been holding their breath while watching prices across their assets move higher. Uncertain if the increase is temporary or the permanent reversal they’ve been waiting for is finally here. Experts say it’s still too early to say – according to the head of research at Valkyrie Investments, Josh Olszewicz, this rally could be a bull trap and that Bitcoin may resume the downward trend we’ve seen for the past two months.

Due to the high inflation and the likelihood of recession paired with central bankers raising rates, experts predict that it’s going to force all assets downward at least through the end of the summer season. With that, it’s important to keep in mind that the decision to buy Bitcoin comes down to a mixture of belief in its long-term potential and your financial situation. Just like other crypto assets, the behaviour of Bitcoin is not stable due to its volatility. To be on the safe side, you need to learn how to manage the risks so that if Bitcoin fails again, you won’t lose so much that it could lead to bankruptcy.

Conclusion

As mentioned, the cryptocurrency market is highly volatile, so the values of cryptos could go up and down in just a blink of an eye. Whether bitcoin is sustainable or not is difficult to say as the market is indeed uncertain. The best thing that you can do is to learn how to approach the market’s volatility and manage the risks so that whenever Bitcoin falls in the slumps again, you won’t be put in a risky situation where you have to end your career due to a significant amount of loss.

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