Home News What Are the Drivers Behind the Latest Bitcoin Pullback? Let’s Find Out

What Are the Drivers Behind the Latest Bitcoin Pullback? Let’s Find Out

2022-02-25 16:47:00
What Is Bitcoin's Current Price
2022 is destined to be a nerve-wracking year for most investors because Bitcoin and other major cryptocurrencies are experiencing the huge volatility and broader decliness. Due to the latest pullback, many investors, I believe, are overwhelmed with anxiety and panic. But according to experts, the pressure could be short-lived, which is caused by some temporary factors.

The Current Price of Bitcoin

According to the coinmarketcap, bitcoin price live is $35630.57, down by 8.16% in the last 24 hours. It suffered a constant slump during the last seven days, with the price of bitcoin falling by 17.53%.

Drivers Behind the Latest Bitcoin Pullback
Matt Hougan, chief investment officer of Bitwise Asset Management, said on Tuesday, "It always is uncomfortable when the market goes down, but I think we're actually setting up for an extraordinarily strong second half of the year" According to his analysis, there are three factors behind the current pullback, which can be solved later. The first one is the broad market shift to a risk-off market, which pushes through the crypto market.
The second is related to policy, that is, Biden issued an executive order on crypto. This problem may be solved if a government-wide strategy for crypto regulation is developed.
The third one has something to do with the conflict between Russia and Ukraine. Data shows that the price of BTC slumped below $40,000 this past weekend due to the escalated tensions between Russia and Ukraine.
While the Bitcoin price rose on Wednesday, it has been getting lower so far throughout 2022. According to the Gate.io data, the only top exchange with 1300+ coins, the bitcoin price began to slump after topping $68,000 at all-time highs in Nov, 2021, starting at less than $48,000 at the beginning of 2022.

Is Bitcoin Still A Good Investment in 2022?
The answer is yes. As is known to us all, as a risk asset, BTC can fall out of favor from a short-term perspective when there is a risk-off trend in the market, which will, in a short period of time, overwhelm those secular trends.
That's what we're seeing right now, which is similar to the situation in March of 2020 when it sold off at the start of the pandemic.
Many experts state that they feel extremely bullish when it comes to the Bitcoin market, which according to different sources, will have a great rise by the end of this year. According to them, long-term trends are extremely powerful with great potential, which means that you can hold for the long-term and regard recent pullbacks as opportunities to establish new positions.

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