Bitcoin (BTC) is starting to look bearish again. The recent flash-crash from the $8,000 level to below $7,500 reintroduced bearish sentiment. Now, there are expectations BTC is in a dire situation, with insufficient enthusiasm to repeat a price peak or break the 2017 price record.
Bearish Sentiment Plagues Bitcoin
The recent price drop for BTC, along with the price weakness seen since the summer months, led to bearish expectations that the leading coin may not see a new high this year. But there are also expectations that bitcoin may not see a rally like the one at the end of 2017.
A Reddit thread explained why the enthusiasm from 2017 was a one-off event. Also getting BTC to reach $50,000 or even $100,000 would require too large investments, which are nowhere to be seen, the poster commented.
“Going from $300 to $20k took about 200 billion give or take. Chump change. You guys seriously think TRILLIONS are going to flow into bitcoin overnight because it’s getting more scarce”?! If people are not interested in bitcoin they don’t give a crap if it’s scarce or not,” commented u/Viruscatman.
The thread also held the bullish view – that the current negative mood and the danger of capitulation were actually a sign of a surprise recovery. Also, that eventually the crypto space would attract enough investment to push bitcoin to $50,000.
But since July, the climate surrounding Bitcoin worsened. According to The Modern Investor YouTube channel, the downturns in BTC prices and the worsened mood were due to the crackdown against Facebook’s Libra.
Libra Created a Mix of Hype, but Invited Heightened Regulations
The announcement of Libra preceded the biggest yearly rally for BTC so far.