In spite of the predictions in favour of a bull market that has scoured the Bitcoin market, it appears that a bear market is not inevitable after all. This week, the Bitcoin market saw a sudden downtrend up to the point of less than $10,000. The reasons behind this could be a result of diverse factors ranging from occurrences in China to the untold tussle between demand and supply.
A little earlier this month, experts were optimistic about Bitcoin continuing its rally, citing geopolitical tensions — particularly the ongoing United States-China trade war — as a reason for its possibly continuing success. Galaxy Digital CEO Mike Novogratz commented on Aug. 5 about this possibility, saying:
“With the yuan over 7.0, an FX war, instability in HKG and the beginnings of capital flight, $Btc rally could have real legs.”
Co-founder of market research firm DataTrek Research Nicholas Colas recently said that investors in Hong Kong and Argentina have used the original crypto as a safe haven asset. Forbes contributor and former executive director at Deutsche Bank Peter Tchir recently wrote in an article that Bitcoin is a leading indicator of hidden geopolitical tensions.
Crypto investors are reportedly now divided into three main camps regarding Bitcoin price predictions. The most bearish of the three say that Bitcoin is set to pull back to $8,500–$7,500 while the moderates say it will consolidate between $9,000 and $12,000 prior to its rewards halving in 2020.
The bulls remain unphased by recent price trends and remain confident that Bitcoin will retake its yearly high and continue upwards. Correlation data with Tether (USDT) suggests that it will reach $20,000 in about a month.
At press time, Bitcoin is trading at $10,048, down 5.81% on the day and almost 16% on the week according to data from Coin360.