Analysts claim that Bitcoin still lacks new buyers

Analysts claim that Bitcoin still lacks new buyers

  • Bitcoin's recent price drop is creating new buying opportunities that are perfect for new investors who might want to move in on the market.
  • However, the coronavirus caused many people in the US to lose their jobs and file for unemployment.
  • As such, they are choosing cash over crypto, and the asset is missing new buyers, while even the old ones are leaving for the time being.

Bitcoin has had its price go up and down for years now, often by quite a bit. Each time when the price would fall, the coin quickly saw a major recovery, which eventually became a surge. A common result was a new ATH, which made BTC more and more famous and attracted new buyers.

This time, however, BTC is already well-known around the world. Many expected that its recent price drop would cause new buyers to move in on the market. The drop is a good opportunity to exploit the coin’s low price to get into the crypto industry.

No new buyers for BTC

Meanwhile, the founder and CEO of Nugget News, Alex Saunders, recently stated that BTC is lacking these new buyers. According to Australia-based analyst, new market participants are not coming, likely discouraged by a number of catalysts. One of them, according to Saunders, is a wrecked US job report.

Recently, over 3 million US citizens filed for unemployment. This comes as a consequence of the coronavirus outbreak, which is causing major damage to the US economy.

As a result, jobless people are not turning to Bitcoin, but to cash. This is not that surprising — they are familiar with it, and they can use it in day-to-day life. However, it is damaging for the crypto industry, as these people are no longer exposed to it. They are also missing trading opportunities in a market that is rapidly turning bearish.

Bitcoin is losing value and investors in the short-term

With investors liquidating their crypto assets, the coin is seeing reduced demand, which is causing its price to drop. Xsquared Ventures partner, Brad Mills, also admitted to selling his BTC as he predicts a bad few months for the crypto industry. But, he also stressed that he does plan to buy again in the future.

Meanwhile, BTC cannot act as a safe haven for those who are abandoning the stock market and looking for a safer asset. This comes despite the fact that most people remain bullish on BTC in the long-term.

Currently, BTC price sits at $6,254, with a 6.17% drop in the last 24 hours. However, due to the increased volatility, many expect its price to potentially stabilize at a lower level, likely around $4.200-$4,400.

By Ali Raza
A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications. Raza is the co-founder of 5Gist.com, too, a site dedicated to educating people on 5G technology.

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