Is Bitcoin’s Bullish Run Over?

Some hours ago, Crypto bulls propelled Bitcoin and many crypto assets into want crypto pundits called a relief rally, however recent market actions reveal such moves stalled as investors became unsure of what might happen next.

Adding credence to such bias is data collated by Glassnode that shows as Bitcoin price plunges the supply of the three major stablecoins namely Tether, Circle, and DAI has break record highs, suggesting, investors are mostly staying on the sidelines.

About $20 billion of long positions were liquidated in the past week, according to Sam Bankman-Fried, the helmsman behind crypto derivatives exchange FTX. “In terms of price movements: the biggest part of it is liquidations”

Short-term traders are currently having a tough task breaking into profits on the bias that reveal 70% of all short-term Bitcoin holdings are currently at a loss.

After a recent attempt by Bitcoin buyers in pushing the flagship crypto above $40,000 price levels, it only took few hours for it to fall back on the $38,000 support level.

Weakened market sentiments were triggered when the Chinese government in the past few days issued a crackdown on the Bitcoin mining industry coupled with exclusion from its financial ecosystem as the Chinese Apex bank reaffirmed rules curbing crypto transactions, thereby pushing the Crypto market to lose more than $500 billion in value.

Indeed, it’s no longer a hidden fact that the pioneer crypto asset is still the engine that drives the crypto market. Market analysts still expect more headwinds over growing calls for stronger regulations.

Consequently, Fink the leader of the world’s biggest asset management company advised investors that it was too early to know whether crypto assets like Bitcoin were “just a speculating instrument and buttressed on broker-dealers being the biggest gainers amid the crypto’s high volatility.

This further suggests though BlackRock has some of its funds exposed to the world’s most popular crypto asset, considering it owns a 15% stake in MicroStrategy, managed by Bitcoin supporter Michael Saylor, experts anticipate the $9 trillion asset management company would prefer to see more stability from Bitcoin before directly exposing its clients to them.

The flagship asset has already lost more than a third of its value since its mid-April record high as worries about the pioneer crypto negative environmental impact has dented the argument that Bitcoin will inevitably draw more mainstream investment.