Bitcoin Lost at the "Bear-Bear" Crossroads? Hear what the experts have to say

Since the start of the year, investors have been eyeing the upcoming Fed rate hike. Additional pressure from a potential conflict between Ukraine, Russia and NATO nations added more pressure to an already uncertain market.

Media terminal data shows that Bitcoin has been trading between $41,500 and $43,000 in the past few days, and in the past 24 hours, Bitcoin once again fell below $43,000 and hovered around $42,300, with daily volatility around 1% , as prices continue to consolidate and lack upside momentum, the waiting game for crypto players continues.

Bitcoin Lost at the "Bear-Bear" Crossroads? Hear what the experts have to say

Experts believe that Bitcoin’s movement could continue to be tested this week as investors focus on political developments between Ukraine and Russia and weigh the possibility of the Federal Reserve raising interest rates by 50 basis points in March.

Bitcoin has long been seen by early investors and enthusiasts as a safe-haven asset — ideally, it offsets risk in portfolios and limits exposure to negative shocks.

In recent months, however, Bitcoin has moved in a similar fashion to stocks, especially riskier growth stocks. Bitcoin is still recovering from a sharp decline earlier this year, when rising interest rates caused investors to dump positions in technology and other risky assets.

Yuya Hasegawa, a market analyst at Japanese exchange Bitbank, told CNBC: “Bitcoin has been labeled as stateless currency by some, and it has performed well in the past with geopolitical tensions, so we can expect some demand as a safe-haven Asset. However, the changing landscape makes Bitcoin vulnerable to U.S. stock market volatility, so Bitcoin investors may not feel comfortable until the situation on the Russia-Ukraine border begins to stabilize.”

Crypto 'winter' could last for months

Bitcoin prices have fallen about 10 percent since 2022, and are down about 38 percent from their all-time high in November, according to BitTui terminal data.

In an environment of rising interest rates, tech and growth stocks could struggle for a while. This means that if we are now in a crypto "winter" (i.e. a longer bearish period), it could last a few months.

Chris King, CEO and founder of Eaglebrook Advisors, said: "If we were in a bear market, we would see another 8 or 9 months of sideways [movements] as the hype leaves the market and the real players continue to build this. technology opportunities”.

Fairlead Strategies founder Katie Stockton said that resistance at $46,730 should remain intact this week, with support near $37,360, but Bitcoin will not have a short-term test.

Crypto investment veterans who have seen the storm say this consolidation is "a piece of cake". Bitcoin has only experienced one true crypto "winter" before: in 2018, the price fell about 80% from its then-record high. The market has changed significantly since then.