Since July 2021, the largest difficulty drop is noticed
This week, the World Economic Forum is giving a dose of realism to Bitcoin, and many people are still forecasting a major BTC price drop. As the week progresses, Bitcoin (BTC) is off to a better start than most, with bulls averting substantial losses. Despite the fact that declining stock markets continue to impact the largest cryptocurrency, it is defending $30,000 on May 23 and heading for the top of its post-Terra (LUNA) trading range.
While there are no signs of a miraculous price rebound on the horizon, some are expecting an upward breakout before a reversal to the downtrend. The macro-environment remains shaky, and the World Economic Forum’s (WEF) Annual Meeting is set to add gasoline to the fire regarding Bitcoin tolerance. When you add in the biggest downward difficulty adjustment since July, it’s evident that Bitcoin is fighting for strength on numerous fronts.
Given the entire picture, which included stock correlation and monetary tightening pushing them down, not everyone was optimistic about Bitcoin’s upward potential. On May 23, famous Twitter trader Nebraskan Gooner informed followers, “My favorite Bitcoin scenario is a nuke straight to $22k before a strong bounce close to $40k.” This viewpoint aligns with current desires for Bitcoin to surpass its previous low of $23,800, which was set in the aftermath of the Terra catastrophe.
Filbfilb, the co-founder of the trading platform DecenTrader and a long-time market pundit, indicated late last week that it was time to admit that Bitcoin was in a bear market. The crash of stablecoin TerraUSD (UST) earlier this month drew crypto even closer to the banking establishment’s attention. President of the European Central Bank Christine Lagarde stated that all cryptocurrencies are “worthless” and, ironically, require regulation.
Because of price activity, Bitcoin has been notoriously dull for the general public until 2022, but now even existing investors are wilting. Meanwhile, a prominent trader and analyst Rekt Capital stated last week that a more significant price move would be required to influence mood in a meaningful way.
Read more: Bitcoin Dropped Below $40,000, Second Time in the Month