Has Bitcoin Bottomed Out Already or Will It Get Worse?

Bitcoin (BTC) fell by 16% earlier this week, hitting $50K and impacting the market in a dramatic way. This drop left many investors wondering if there is more to come or if the worst is over.

We saw a massive selloff of Bitcoin occur over the last few days as investors bail on the crypto, but the low point was also an opportunity for many investors to buy the dip with this crypto token.

The market dynamics have changed after Bitcoin fell to its lowest point since February, and the coin has demonstrated volatility on a level not seen in a while. Even though Bitcoin has been held up as immune to broad economic factors, it is evident that the recent unemployment report that showed increased unemployment had a direct impact on the coin’s value.

Inflation continues to remain high, creating market uncertainty and volatility on the stock exchanges. Changing crypto policies from government bodies are also creating apprehension surrounding decentralized currencies. Bitcoin is not immune to these factors, and the coin is definitely struggling to regain its previous highs from earlier in 2024, even though it has climbed back up to $57,819 (BTC/USD) today.

Is There Still More Bad News to Come?

Bitcoin is up by 0.98% over the last 24 hours, which is a good indicator of the coin’s short term stability. Even so, the token and the wider market are in a fragile state at the moment. It would not take much to derail their progress since the dip and send them hurtling back down.

Bitcoin does have the recent launch of Bitcoin Spot ETFs in its favor, as their entry onto the market helped push Bitcoin’s value higher. Around $17 billion in inflow has gone into Bitcoin ETFs, and yet the coin is still having a challenging time staying above $60K.

Investors are worried about Bitcoin’s ability to achieve a new high and to make a profit for investors who expected the coin to hit $100K or even $150K this year. Bitcoin halving has not worked out for investors as expected either, as there is usually a price spike shortly after the halving takes place. But that has not occurred either, leaving Bitcoin in a state of uncertainty where anything can happen, but the most likely trend is that Bitcoin will continue to struggle well below its all-time high for the foreseeable future.

Investors need to be extremely cautious of any new economic factors that could drive Bitcoin down further, like the recent jobs report. They should also be cautious of any large volume transfers that could drive down the value further, as we have recently seen when the German and US governments transferred seized Bitcoins, and the defunct Mt. Gox exchange made payouts to its former customers.