Bitcoin’s net loss has touched an all-time low for the first time since last year. Last week, the net unrealized loss reached $3.5 billion, underscoring the severity of the present bear market. A Bitcoin watcher noted that the new record surpasses that of 2020, suggesting that this year’s slaughter is much more severe than prior years.
Furthermore, short positions have grown once again as bears and bulls battle it out, keeping the Bitcoin market from breaking out higher.
This was noted by one trader in the tweet below:
“Over $100 million in short positions have been added to Binance in the previous 15 hours. Someone is doing everything they can to prevent a market breakout. Let’s see what happens once the choices have expired…Bulls VS Bears.”
There has been a lot of conjecture about where the Bitcoin market will go in the long run, and some experts believe Bitcoin outperformed in the first quarter, claiming that the asset’s basic growth was not sustained over time.
Rewinding a little, this appears to be somewhat true. Bitcoin began the year gaining traction in the traditional finance industry, with institutions and individual whales showing interest in the commodity. The year 2020 laid the groundwork for this trend, as the American public began to gravitate toward Bitcoin as an alternative store of wealth.
The outlook for the third quarter appears to be positive.
Many business organizations were observed integrating Bitcoin into their balance sheets by 2021, confirming Bitcoin’s status as the most promising store of wealth at the time. However, as predicted by experts, the increase in market capitalization and prices could not be sustained as many of these institutions withdrew.
Although a big number of people are still engaged in the Bitcoin market, the major selloff that occurred in May and June has been linked to the instability that erupted in the same financial area that Bitcoin chose.
The storm is anticipated to settle as miners relocate and energy worries fade, and Bitcoin is expected to steadily pick up. If additional bad news emerges in the coming weeks, the second quarter is likely to keep Bitcoin in the red for a long time. This might indicate that the optimistic rebound predicted by on-chain analysts won’t start until the third quarter of the year when Bitcoin is projected to treble its present value.