Briefly

  • BTC experiences massive volatility, plunging beneath the $31K level.
  • It seems like the supercycle outlook is fading as the coin havens in a risk-off atmosphere.
  • The current market situation seems to test the claims that BTC can counter inflation.

With the recent BTC sell-off, market players remain alert for any price movement. With today’s plummets, the leading currency might drop to its lowest value this year. For now, most investors remain skeptical as far as the broader market is concerned. If the crypto enthusiasts are in a BTC supercycle, the end might translate to a crypto market crash.

A BTC Supercycle End Might Bring Price Crash

A supercycle narrative that if market security experiences a bullish price increase, its price will increase further. Combining investor confirmation and confidence bias translates to higher prices.

The thesis is among the many narratives that contributed to the Bitcoin surges to $64,863 in April. You can refer to the bullish rally that started late last year as a supercycle, which looks to edge towards an end. Keep in mind that the BTC supercycle end incorporates dramatic price crashes.

The current sell-off has instilled fear in investors as the second part of this year seems not promising. Keith Lerner, a Trust Advisory Services chief marketer, affirmed the need for investor confidence to influence BTC rallies.

Meanwhile, crypto fans have believed that BTC is safe against inflation. The leading coin strengthened the notion one month before recording its peak values. Holders seem safe from the weakening dollar.

Everything looks to change now as BTC lost more than half of its worth since its highest value as inflation concerns stormed the financial space. Remember, such a move coincides with the analyst’s predictions that BTC would be more valuable. Instead, the coin lost 50% against the United States dollar.

An Uncertain Macro Environment Has BTC Struggling

Bitcoin has struggled over the past months due to various attacks. For instance, the stiff regulations by China saw over 40% of Bitcoin miners suspending their activities. Regardless of that, the asset seems to survive the crackdown. Moreover, traders enjoyed a hedge against inflation in 2021. Bitcoin Archive posted on Twitter that their BTC purchases offered protection against inflation.

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