Bitcoin has recovered after a challenging weekend, and the crypto market remains optimistic even though there are signs that the overall economy is going downwards.
On August 5, there were substantial drops in the world’s stock markets. The benchmark stock in Japan fell more than 12%, and the Dow Jones and Nasdaq also fell significantly. The market value of the big tech companies dropped by $650 billion as a whole. BTC fell below $50,000 and reached $49,578. This affected the crypto market too.
Crypto expert Young Ju warned on platform X that the crypto market is still open to attack. He said that it looks like Bitcoin will return if it stays where it is for one to two weeks.
Bitcoin Market Remains Vulnerable
Long-term stagnation could be a sign that a bear market is about to start. Young Ju stressed that if Bitcoin’s price stays above $45,000, it might hit new all-time highs, higher than this year’s high point of $73,737.94.
Young Ju said that the current downturn was more like early 2020 than late 2021. He said that it was because of macroeconomic uncertainty rather than underlying problems.
One interesting trend in the market is the shift of Bitcoin from long-time holders to newcomers and institutional investors, with private investors playing a less significant part. This change could be very important for keeping the market stable during times when the economy is not performing well.
Bitcoin is selling at about $56,000 at the moment, up 13% since August 5 when it was at its lowest point.
