Last week’s dramatic pullback in Bitcoin and other cryptocurrencies after a series of unexpected news, from Elon Musk announcing that Tesla no longer accepting Bitcoin for payment to China’s latest move to tighten crypto regulation, have triggered a panic in the crypto community and caused apprehensive emotions towards the market. However, there are several reasons that we can believe the bull market is not over yet.
After a year of going strong, Bitcoin’s market cap has reached a new level, once surpassing over 1 trillion dollars in April. Notably, the nature of its asset class is changing, thus rapidly getting it exposed to increasing macro impacts, which it hardly experienced before. Therefore, it was normal for Bitcoin and other cryptocurrencies to undergo some ups and downs under the recent uncertainties from the social environment.
Besides, we’ve seen an upsurge in various new and innovative blockchain applications, such as DeFi and Decentralized Application (DApp), indicating that nothing has promised as much when it comes to revolutionizing the global marketplace like cryptocurrency. However, trading with high leverages - particularly in the DeFi market - has brought wild swings to the crypto market, being a big theme that accentuates the volatility.
In a word, the wave is a liquidation event when crypto seeped into more people’s pockets, and the positivity in price actions started shaking - a confluence of events. And since the cryptocurrency industry is changing every day, we might see the market recover in only a few months.
For BitMart, we take it as a perfect time to reassess and refurnish ourselves for a better platform and finer service. BitMart has invested heavily in building up an all-encompassing compliance structure since day 1. In the long term, we will embrace new regulations with confidence and with no doubt to support a well-organized ecosystem.
“Crypto market has been characterized by large volatility since its creation. With global governance in the sector getting more and more strict, risk tolerance is something everyone needs to deal with along the way, especially when regulations come out without an exact date,” commented Sheldon Xia, BitMart Founder, and CEO. “This is not the first time China carried out ‘bans’ on Bitcoin. Other governments in the US and Europe are tending to enhance crypto regulations at the same time. However, it is important to remember where we should go and keep updating our strategy. With the focus on sustainable development in the crypto ecosystem, I have strong confidence in Bitcoin’s long-term value.”
BitMart Exchange is a premier global digital assets trading platform with over 5.5 million users worldwide and ranked among the top crypto exchanges on CoinGecko. BitMart currently offers 400+ trading pairs with one of the lowest trading fees in the market. To learn more about BitMart, visit their website, follow their Twitter, or join their Telegram for more updated news and promotions. Download BitMart App to trade anytime, anywhere.