Bitcoin, the world’s leading cryptocurrency, is on track to mark its first positive week after nine consecutive weeks of losses. Earlier today, the largest cryptocurrency reached an intraday high of $29,942 on the Bitstamp exchange. However, the top cryptocurrency might need to close above $29,232 to be able to end the week on a positive note.
Bitcoin suffered from a combination of unfavorable macro conditions and systemic risks within the crypto market. In the first week of May, the world’s largest cryptocurrency dropped to $25,401, the lowest level since December 2020. Bitcoin traded at $29,948 at the time of publication.
“Right now, the crypto world is in crisis, having lost trillions of dollars. We’re in a bear market,” Deepak Chopra recently told CNBC. However, the wellness icon believes that now is the time for investors to concentrate on the long-term potential of financial markets, including cryptocurrency.
The crypto market has had a rough patch recently, and it’s been difficult for cryptocurrency investors to keep their emotions in check. TerraUSD, one of the most popular dollar-pegged stablecoins, imploded nearly overnight, leading to the sector’s market cap drop. Bitcoin and Ethereum, on the other hand, have seen huge price drops from their recent bull market highs.
Investors can’t ignore the recent crypto market catastrophe, argues Deepak Chopra, who is also an NFT investor, but they should be able to see beyond it.
“Right now is the time to think long-term in these financial markets, including crypto. I think emergence happens when you have maximum diversity of people hanging in there creatively, complimenting each other’s strengths and having some kind of a spiritual and emotional ecosystem where they can help each other and that’s happening right now in the crypto community,” Chopra said.
Though declining trade volumes on crypto may signal the start of the next “crypto winter,” a multiyear bad market that happens on a cyclical basis for the crypto asset class, it is unclear whether the recent rout represents the start of the next “crypto winter.” The previous “crypto winter” lasted from 2018 to the fall of 2020, during which time the value of cryptocurrencies plummeted and layoffs were common.
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