Massive liquidation amid bear-trend fear takes down the crypto market

There has been a surprising sudden downtrend amid the booming crypto market. The bull run, which started earlier this year, shows a faded chance of the arrival of the bear market as there have been several factors bringing down the prices of bitcoin and other valuable coins to less than half, what it was this week. Bitcoin, which had reached its ATH of $63,000 last month, saw a decline of about $30,000. Similarly, Ethereum, which was performing exceptionally well, also almost halved. The other altcoins have been seeing bloodbaths, where the prices have gone down insanely low.

However, market analysts believe this is not the end of the bull run yet. It may be a temporary market correction that was due. The episode of Elon Musk announcing not accepting Bitcoins for Tesla cars anymore first started the downtrend, and later China announced that it would not allow cryptocurrencies or mining in the country.

“A huge market is scared,” said Greg Magadini, chief executive officer for data aggregator Genesis Volatility. The majority of the crypto mining firms are still concentrated in China, and any policy updates in the country severely affect the crypto industry.

“China has played this game before where they have banned crypto and brought it back. There are reports that China is focused on their own digital currency within the government, so it’s possible that this was the motive,” said Steve Ehrlich, chief executive officer for financial service firm Voyager Digital. Amid the growing fear, where the new users are selling their crypto assets, long-term investors are better positioned to buy the dip and enjoy profits in the longer term.