"Extreme fear" breeds hope, Bitcoin rebounds strongly after hitting bottom, breaking through $43,000

In just one month, the crypto market fear & greed index has slid from extreme greed to extreme fear. The price of Bitcoin has also slipped from nearly $49,000 to around $42,000. Four days ago, when everyone was expecting Bitcoin to be sideways and accumulate strength to set a new high, "Mr. Market" once again played a joke on everyone. Breaking through $50,000 seems to have become a story of the last century. Now analysts are targeting the support level near $40,000, saying that once the $40,000 mark is maintained, Bitcoin will rebound again. As of press time, the price of Bitcoin is $43,217.81, up nearly $3,000 from the lowest point on the 21st.

After surpassing the $1 trillion mark two weeks ago, the market value of Bitcoin has now dropped to $800 billion. Many people in the market regard Bitcoin as a global reserve asset, but a market value of only $800 billion is too low for a global reserve asset. Even though Apple's market value is 2.5 times that of Apple, and gold, which has always been a global reserve asset, is 10 times that of Apple. Although Bitcoin has risen nearly 5.5 times in the past year and a half, the market is still not satisfied, and many people even expect Bitcoin to break through $100,000 by the end of the year. Although on-chain data shows that long-term holders have stable trading volume and no signs of large-scale selling, it seems that retail investors are in a serious FOMO mood, which seems to continue to affect the market in the short term.

On-chain analyst Galaxy believes that the decline in Bitcoin is only a short-term correction, and the current trend of Bitcoin is still very healthy and will usher in a new bull market.

At present, the trend of Bitcoin is still driven by retail investors. Since the Bitcoin ETF has not yet been officially launched in the United States, the retail market still has considerable room for development, and the decision of the U.S. Securities and Exchange Commission (SEC) can break the psychological barriers of more people and introduce funds into the crypto market. But this is not the case. SEC Chairman Garry Gensler made his attitude clear in a live broadcast on Tuesday, "Stablecoins are now almost like poker chips in casinos. We have many casinos in the Wild West, and poker chips are these stablecoins on the casino tables."

Recently, Charles Edwards, founder of Capriole Investments, pointed out that "Bitcoin is generally considered a risky asset because 1) Bitcoin is too small and 2) traditional investors only see Bitcoin's high volatility, but fail to see that Bitcoin has the best Sharpe ratio (risk-adjusted return) of all assets." In addition to this, almost every correction in Bitcoin in 2021 has been correlated with a correction of more than -2% in the S&P 500.

At present, major cryptocurrency trading platforms are also working hard to simplify and lower the threshold for entering the crypto market. Robinhood, a stock and crypto trading platform, announced the official launch of cryptocurrency wallets and transfer functions. Starting next month, the first batch of customers will be able to try out crypto wallets on this trading application, and Robinhood will continue to open access to more and more users through the waiting list. Robinhood promises that the new wallet will embed security features such as identity authentication, multi-factor authentication, and verification by email and phone. Currently supported cryptocurrencies include Bitcoin, Ethereum, BCH, BSV, DOGE, ETC, and LTC. In addition, Robinhood launched a cryptocurrency regular investment service a few weeks ago, and as of today, the feature has been developed for all cryptocurrency customers. Users can automatically purchase tokens for as little as $1 on a selected schedule, and commission-free.

In the foreseeable future, the incremental market of the crypto market remains vast and the future performance is promising.