Bitcoin has definitely seen better days even in 2019 and while it sometimes seems to be awaking again, the number one coin is largely struggling to hold on to even a small semblance of its past glory.
Now to make matters worse, a new report from SFOX crypto exchange based in California, has suggested that Bitcoin investors and traders might have a bit more to worry about as the market’s king coin isn’t exactly bullish anymore.
SFOX says that due to certain economic factors, the exchange’s index which read that Bitcoin was “mildly bullish” quite recently, has now shifted to “neutral”. SFOX suggests that the ongoing and prolonged trade tension between the U.S. and China, as well as the impeachment inquiry being faced by President Donald Trump, just might be major factors affecting Bitcoin’s growth.
“Recent events such as the China-U.S. trade war, have suggested that broader macroeconomic uncertainty impacts crypto markets just as it does equities and bonds, and these most recent data reinforce that idea. The most recent downturn could potentially reflect macro factors from an ongoing impeachment inquiry to recession worries potentially looming large for traders.”
Another factor to be considered, according to SFOX, is the recent Bakkt launch. The platform by the Intercontinental Exchange, which was touted by many as the eventual factor that will serve as a catalyst to Bitcoin, failed to live up to its expectation and drove Bitcoin down instead.
SFOX states that the “macroeconomic uncertainty” can also be felt in traditional markets as well, especially because gold, as well as the S&P 500, have also not performed well enough.
Since Bakkt’s failure to revive the Bitcoin market, more than a few opinions have poured in. While some believe that Bakkt was never going to do much for Bitcoin because institutions who were interested in crypto before Bakkt had already found a way into the market, others believe that it’s a little too early to write Bakkt off as a failure. SFOX also seems to agree with the latter. According to the report:
“It’s possible that this drop in crypto partly reflects traders acting emotionally when an overnight flood of institutional money into crypto didn’t happen, even though that scenario was probably unrealistic in the first place.”
Up till now, there is no pointer to the possibility that the current macroeconomic factors affecting Bitcoin and the broader market, will be resolved anytime soon. Therefore, traders might want to consider that Bitcoin might remain “neutral” or even slip down to “highly bearish” on the SFOX index.
