Bitcoin Struggles to Find Its Way to Positive Territory After Brief Dip Below $40,000
Market Musings

Bitcoin Struggles to Find Its Way to Positive Territory After Brief Dip Below $40,000

By Connor Sephton
3w ago
2m

Some traders appear resigned to the fact that further downside may lie ahead.

Bitcoin Struggles to Find Its Way to Positive Territory After Brief Dip Below $40,000

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Bitcoin is struggling to find its way back to positive territory, with prices briefly falling below $40,000 late on Tuesday evening.
With the Crypto Fear & Greed Index now flashing a score of 21 — Extreme Fear — some traders appear resigned to the fact that further downside may lie ahead.
Although Bitcoin’s price did bounce back above $42,000 on Wednesday morning, bulls may face an uphill struggle as they attempt to advance to $43,000 and beyond.
The ongoing woes engulfing the crypto world are linked to Evergrande, a giant Chinese property developer that is drowning under $300 billion worth of debt.

Jitters have spread throughout global markets amid concerns that the company was struggling to keep up with interest payments — but on Wednesday, reports suggested that it had made a deal with some of its debtors.

Details are thin over how wide-reaching this agreement is, meaning it may do little to assuage the fears of investors.

‘People Get Hurt’ 

Crypto investors were also keeping a close eye on remarks made by U.S. Securities and Exchange Commission chairman Gary Gensler during an interview with The Washington Post — keen for clues on what may lie ahead from a regulatory standpoint.

During the discussion, he likened stablecoins to “poker chips at the casino,” and warned people will get hurt without stronger oversight:

“I think there's just a lot of kind of warning signs and flashing lights that we might have a spill in aisle three, and I'd rather get ahead of it.”

Gensler said that he believes Bitcoin’s whitepaper, authored in 2008, was innovative in some ways — but this has resulted in an asset class that’s highly speculative.