After barren days, Bitcoin fell below the $40,000 level and the overall market capitalization of the crypto market in general fell below $2 trillion.

But the bulls are still betting on the crypto market and see that it still has additional bullish rounds.

When the price of Bitcoin crashed on Wednesday last week, many traders panicked and worried, especially those new to the game who rushed to wholesale.

Some are already fearing the worst, expecting another frosty winter.

Bitcoin is showing signs that the bullish trend may be coming to an end especially when the cryptocurrency suffered the worst dollar-denominated decline in its history.

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But many analysts believe that we are still in a bull market, and that the decline in the value of Bitcoin is overdue.

Opinions of Analysts and Experts on the Crypto Market:

We haven’t entered a bear market yet, and Bitcoin’s massive gains over the past year haven’t been sustainable, told Fred Bay, CEO of 3iQ crypto-indices trading fund based in Toronto (Canada).

He added:

This withdrawal has a lot to do with China, and how they want to crack down.

The market was desperately looking for a reason to make a correction, anything from $10k to $60k at the time doesn’t make sense at all, just look at our hedge fund rates of return, it’s not humanly sustainable.

He added:

Corrections like what Bitcoin just witnessed has already been made with tech stocks and they are very natural corrections.

Charles Bouverd, Vice President of Content at Quantum Economics echoed Fred’s statement, adding:

We are not in crypto winter.

Such declines are to be expected.

Bitcoin’s decline began last week when billionaire investor Elon Musk announced that his company, Tesla (which invested $1.5 billion in Bitcoin in February) would not accept Bitcoin as a payment, citing environmental concerns.

Read:Cryptocurrency market cap drops below $1 trillion, Bitcoin hits weekly low

This led to confusion in the markets.

According to data firm Glassnode, this has caused people to sell their crypto holdings.

China’s central bank and a few Chinese payment firms have rewritten the rules limiting cryptocurrency transactions, leading to more chaos in the market.

China is also cracking down on those who produce bitcoin, with the Chinese Finance Commission saying last week that it will monitor bitcoin miners in a bid to prevent and firmly control financial risks.

Bitcoin and the altcoin market in general continued to decline in value, as new and nervous investors may have dumped their crypto holdings.

Many people in the world of conventional finance see the recent volatility as a sign of long-term survival, regardless of whether the markets are rising or falling.

While others are flawed by the volatility of Bitcoin.

Jerry Klein, managing director of New York City-based Treasury Partners, which manages $9 billion in assets, said the recent volatility in bitcoin shows that companies cannot rely on cryptocurrencies as good corporate cash investments.

He added:

When a company invests cash in bitcoin, a price drop in bitcoin can have a significant impact on earnings per share, while price increases provide no benefit.

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According to others, a market pullback like this, despite its scale, appears to be normal, especially given previous Bitcoin cycles.

What we’re seeing now corresponds to five previous major pullbacks during the bull run in 2017, Glassnode said in a report.

But some experts are still not sure.

It’s still too early to say what’s next, Alex Krueger, a former banker and analyst, told AFP.

He added, stating:

This will only become clear in hindsight.

It was not a simple correction that was long overdue.

It was a black swan in both size and speed.

Regardless of the Corona crash, it was the biggest correction since 2013.

The alternative cryptocurrency Ethereum, which is the second largest cryptocurrency by market capitalization, has been hit hard by the recent crash.

The cryptocurrency was on a rampage in 2021, outperforming even bitcoin in terms of annual gains.

But despite the bullish sentiment surrounding its upcoming update to Ethereum 2.0, and changes to its protocol that analysts argue could make it a more attractive investment, Ethereum lost nearly 58% of its value after the Black Wednesday crash.

However, Krueger says that he personally remains very optimistic about Ethereum, regardless of how other assets perform.

And he said:

It is very difficult for cryptocurrencies to accumulate sustainably without following Bitcoin.

In fact, Bitcoin is still the engine driving the crypto market train, so the upward journey may be full of bumps.

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