Bitcoin Faces Identity Crisis, Recovering Some Lost Value
Previously, Bitcoin (BTC) rebounded nearly 20% in a 24-hour period on Thursday. It recovered most of its losses in the crash last week, while stocks further sputter. Meanwhile, other major cryptocurrencies such as Ether, Litecoin, XRP, and Bitcoin Cash all climbed up over 15% too. However, analysts have warned that it may be a dead cat bounce, which will soon fall again.
In the early part of this week, investors are trying to make sense of the previous week’s sudden decline that shortly saw Bitcoin’s price fall to below $4,000.
According to the Seychelles-based BitMEX exchange, Bitcoin dropped to $3,600, over $300 below its price on other exchanges. After that, it closed for maintenance. BitMEX gets many leverages trades because of users who can borrow against their deposits up to a ratio of 100:1. Also, $750 million of Bitcoin became liquidated in just a few minutes on the exchange last week.
Michael Novogratz, the Galaxy Digital CEO and hedge fund multi-millionaire, tweeted amid the plunge, “(BTC) was always a confidence game. All crypto is. And it appears global confidence in just about anything has evaporated.”
In addition to that, the IRS revealed the indictment of Michael Rahim Mohammad; some call him Mr. Dark. They accused him of running Dark Scandals, Bitcoin-funded websites that feature distributing violent rape videos and child pornography.
Users are paying for this content via a Bitcoin under the illusion of anonymity. Then, Mohammad allegedly banked nearly $2 million, but law enforcement caught him by tracking the flow of funds on the blockchain.
During the pandemic, Bitcoin has never moved more hand in hand with the stock market than it has. For a long time, it had the opposite effect. After the stocks plunged, BTC was more likely to rise. However, since last fall, due to more institutional investors joining the disfranchised idealists that long had the industry to themselves, far more short-term trading has taken place.
Baidu and Google
Elsewhere, China currently blocks Google. And Baidu is one of the country’s popular search engines. But Chinese netizens are not the only people with a mounting interest in the crypto market.
Google search result for BTC in the United States has a 30-day high on March 13. This happened after crypto experienced its biggest daily drop in the past seven years when more than $1 billion worth of longs were liquidated.
Aside from that, with a massive portion of the world more plugged in than ever, it’s normal that a lot of people have taken an interest in Bitcoin. Nevertheless, the number of search results in purchasing the cryptocurrency is markedly higher than those seeking to sell it.
Moreover, this data is somehow unusual as Americans in larger cities are told to shelter in place, and some lose their employment entirely. Bitcoin traders might need to liquidate at least a few of their holdings to pay for everyday expenses. But it looks like many are looking to buy more.
Now, the price of Bitcoin stabilized after the crash a couple of weeks ago. Traders might be seeking to purchase while the price is low.
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