At the moment, the whole globe is fighting a very severe wave of inflation that is on the rise; as a result, the financial markets are in a serious plummet, the prices are not as steady as they once were, and investors are worried about losing their investment. Talking about the crypto market, the most volatile financial market out there, is also feeling the tremors of this change that is taking place amid the serious waves of inflation crashing on the shores of the financial sector. Bitcoin has tried its best to establish itself at $50K but has failed more than once, and its price continues to remain below $45k.
The current behavior of Bitcoin is far away from being justified; in the past, the cryptocurrency has run into market corrections, and after some time, it managed to stabilize itself but not this time. It seems that market corrections are taking place simultaneously as Bitcoin does its best to stabilize its price action; this is something that has not happened simultaneously before. The overall metrics that the flagship cryptocurrency is giving out are all so bizarre crypto analysts believe that Bitcoin would be able to head for recovery amid the rise in network activity and transactional volume suddenly increasing.
But after some time, there was a 3% decrease in overall transactions taking place, and new addresses are next to nothing week after week. This shows that investors are losing touch with Bitcoin and are possibly looking for other cryptocurrencies to invest in. Suddenly the feeling that Bitcoin could be the hedge against inflation is being targeted intensively, and it is unsure if people would be able to look up to Bitcoin as an asset to invest their money into for the sake of fighting inflation.
Crypto analysts are just having the hardest time trying to disclose the price bottom for Bitcoin as the overall market sentiment for the flagship cryptocurrency lies in the bearish territory. Investors are backing out their investment, and Bitcoin seems to be in shallow waters. But the one thing that remains uncertain is if $40 K is going to be the price bottom for Bitcoin regarding this bearish interval or is there going to be an even lower price action reported in the upcoming weeks.