Some market observers have even compared the current bitcoin bear market to the Nasdaq’s dot-com crash earlier this century. However, the cryptocurrency still has devoted followers and bulls, some of which believe the bear market is nearing its end. But that does not mean another epic rally is imminent.
In recent months, regulators around the world have stepped up scrutiny of digital currencies and related assets, including some blockchain investments. Morgan Stanley notes that bitcoin’s rally was far more rapid than that of the Nasdaq in the late 1990s and while bitcoin is not old (it debuted in 2009), the cryptocurrency has already experienced multiple bear markets.
Still, bitcoin’s decline to bring the death cross into play could actually be a sign bears are running out of momentum.
“BTC had to drop by $14,000 (from $20,000 to $6,000) to push the 50-day MA so far towards the 200-day MA. Hence, it’s likely that the bears will run out of steam by the time the actual death cross occurs,” according to CoinDesk.
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