Bitcoin, the largest digital currency by market capitalization, rallied above the $4,000 level recently and is up 1.86 percent the last 24 hours, but some crypto market observers remain bearish on the leading digital currency.
Until the cryptocurrency that was once the toast of the town can resuscitate itself and get out of its latest correction, it calls to mind market bubbles of the past that elevated investors into a state of euphoria before unceremoniously popping and crashing down to earth.
“The Bitcoin price dropped almost 80% over the year, dragging the crypto market with it. Short-term bulls believe the market could be ripe for a bullish run. They cite the steady increase in Bitcoin’s trade volumes and transaction rate,” reports CCN.
However, at least one digital currency market observer remains bearish on bitcoin.
“Researcher and cryptocurrency analyst Willy Woo believes this might not be the case. In a set of tweets, Woo argues that the on-chain volumes are just too little for a sustained run. He cites volatility as a reason for the increased on-chain volume seen in recent weeks,” according to CCN.
Issues To Deal With
Among the issues plaguing bitcoin ;last year were the ongoing unwillingness of U.S. regulators to approve bitcoin-related exchange traded funds as well as data indicating that mainstream acceptance and adoption of the digital currency are declining.