Amid increasing sentiments that the cryptocurrency market has already arrived at the 2021 bear market, market analyst and investor Lark Davis has warned crypto traders and investors against panic-selling amid growing fear, uncertainty, and distrust (FUD).
In a Twitter post, Davis tried to project a 2025 market scenario wherein Bitcoin experienced a massive correction due to China ban.
While Davis is far from making any predictions in a Nostradamus fashion, he merely pointed out that the FUD caused by China’s recent ban was a mere repeat in 2013. Specifically, China’s central bank prohibited financial institutions from handling Bitcoin transactions. This caused many in the crypto community to sell off their bitcoins.
Recently, China announced that it will ban cryptocurrency mining and trading activities. With the market already reeling from the effects of Tesla CEO Elon Musk’s negative tweets regarding Bitcoin, the BTC price dropped even further. At the time of writing, Bitcoin is worth $33.043.12, according to CoinGecko.
In light of this, Davis wrote another tweet explaining previous FUDs caused by China’s crypto crackdown in the past.
Bitcoin’s massive decline has greatly affected the rest of the crypto market save for altcoins, for obvious reasons. From enjoying a so-called altseason, various cryptocurrencies have seen more than 50% price drops in the last few days. Ethereum is barely scratching the $2,000 ceiling despite its impressive performance since last year, while Binance Coin has yet to recover from its $650 all-time high (ATH).
On the other hand, Bitcoin’s market dominance has gone back to more than 40%. Also, the entire crypto market capitalization is at $1.3 trillion, which is at least $1 trillion short from its ATH this year as well.
Currently, the crypto market sentiment is bearish. Many believe that the market will still see more reddish days for a time. Nevertheless, others are hopeful that this season will also pass, and that crypto will see another bull run sooner or later.
