Bitcoin Fighting To Bog Its Price Down At $29K


The price of Bitcoin had initially perked up from its recent low at around $29,000 but the overall sentiment in the market was largely negative. One of the reasons behind a negative sentiment could be the price drop of 25%. Currently, the crypto Fear and Greed Index, which allows for the usage of volume, volatility, social metrics, the dominance of the cryptocurrency, and Google Trends data, has definitely gone down to its lowest level since its value in March 2020- and at this particular moment, there appears to be little protection against a further downside in the price. 

Bitcoin Price Has Been Shaking All Over The Place

For Bitcoin, regulation is still believed to be the main threat that has been weighing down on markets- and it’s pretty clear that most of the investors have been taking a far more risk-off approach in their approach towards high volatility assets. Just this week, during a hearing of the Senate Banking Committee, the Secretary of the Treasury Janet Yellen, called for a regulatory framework on stablecoins and also called for the stablecoin of TerraUSD- which did plunge down below $0.70. 

Furthermore, there was an introduction of a couple of bills in the United Kingdom, which were aimed at addressing the crypto regulation on the 10th of May. The Financial Services and Markets Bill and the Economic Crime and Corporate Transparency Bill did aim at strengthening the financial services of the country, which also included the safe adoption of cryptocurrencies like Bitcoin. 

In order to prove without a doubt that the market structure of the crypto industry has deteriorated, most traders should start analyzing the futures contracts premium of CME’s Bitcoin. The metric does compare longer-term futures contracts along with the traditional spot market price. These contracts- which are basically fixed-calendar usually trade at a slight premium- which indicates that the sellers usually request more funds to withhold settlements for quite some time.