Bitcoin Remains Subdued as the Market Acts with Caution
- Bitcoin slides over 2.4% on Wednesday as the market remains cautious
- Crypto participants expect more mainstream adoption to power the market
Bitcoin Remains Subdued
Bitcoin continues to struggle towards recovery after it suffered its biggest one-day drop since February. Over the weekend, the coin dropped by about 12% just a couple of days after reaching its all-time high near $65,000.
On Tuesday, Bitcoin was able to snap its four-day losing streak by closing higher than the opening price. The digital currency opened for trading yesterday at just above $56,100 and ended the day higher by 1%, or $600, at $56,700. Throughout the day, the crypto token reached a session low of $53,400 and a daily high of $57,050.
Today, Bitcoin is pressured again as the world’s largest coin is trading to the downside, lower by 2.4% on the day. Currently, it is floating around $55,600 as crypto market participants remain wary of the recent sell-off.
Indeed, Bitcoin is going through a rough start of the quarter as the price has declined by nearly 7% month-to-date. During the previous quarter that ended in March, the coin advanced by a little over 100%. It was boosted by strong institutional support and increased demand by traditional finance to own or offer the crypto asset.
Expectations of More Mainstream Adoption
The current bearish trend could also highlight the need for a renewed wave of mainstream adoption, or a continuation of the ongoing one. Presently, major US banks are working over the clock to offer their clients access to Bitcoin-related products. Additionally, nearly a dozen US investment firms are waiting for permission by the Securities and Exchange Commission to create Bitcoin exchange-traded funds.
The present dry spell, according to crypto proponents, is just another pause for breath before the run continues to higher levels. In addition, large mainstream financial institutions, such as BlackRock and a number of banks, also expect the crypto market to progress further into mainstream finance.
Critics of the crypto idea, however, argue that the present bearish cycle is fundamentally right. They believe it serves to showcase that the crypto market is a bubble and a potential move higher would not be sustainable.
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