Prior to the Christmas Holidays, the stock market was floating in negative territory. Even the last trading day ended on a bad note for Wall Street.
Even when the stock markets reopened on December 28, the situation was not favorable for most of the stocks. At that time, the trading price of Bitcoin hovered around $16,750.
Bitcoin Analysts are Making Bearish Predictions
The data from TradingView has shown that the trading price of BTC managed to recover a bit since the last trading session.
The report shows that prior to the slight recovery, the trading price of Bitcoin was at a low of $16,559. However, the bulls were able to push BTC’s price higher with strong buying sentiments.
Right after the Christmas break, the bulls supported Bitcoin and it went up to its current high trading price.
Given the recent downtrends Bitcoin has suffered, it is a positive sign that the BTC price has come close to hitting $17k.
Despite the recent attempts by the bulls and BTC to come closer to the $17k barrier, the trend is still pointing in the downward direction.
The volatility of the asset is still indicating a downtrend and this means that the trading price of Bitcoin may continue moving lower.
The recent dip that Bitcoin experienced resulted in pulling the asset to its December 20 low price.
Interest has Faded in Bitcoin
In recent weeks, a great di has been recorded in the interest of investors toward Bitcoin and the altcoins. The investors do not seem much interested in accumulating digital assets.
Their focus is more on commodities such as gold and silver. These commodities have proven to be the most effective hedge funds against the rising concerns of a recession.
Therefore, investors do not seem much interested in investing in digital tokens and cryptocurrencies.
Despite the general sentiments that are bearish, some entities continue supporting the likes of Bitcoin. Michael J. Saylor, the chairman at a major business intelligence firm, MicroStrategy still supports BTC.
His company is on the same page as well and they have recently proven their loyalty by acquiring another small batch of BTC. This time, they have acquired 2,500 BTC that are worth several million.
It is because of factors like MicroStrategy and its chairman that Bitcoin is still able to make it through the difficult times.
Bitcoin is better than Tesla
Despite the downtrend that Bitcoin’s valuation has faced since the beginning of 2022, Tesla’s performance has been worse.
At the time of writing, Bitcoin hovers around $16,700, which is 60% lower than its year-to-date price. There is still time until the year closes and the year close growth will be defined then.
While Bitcoin is sitting at a 60% loss in value since the beginning of 2022, the situation is even worse for Tesla.
The share prices for Tesla have suffered a major dip since the beginning of 2022 until now. According to the reports, the overall valuation of Tesla has plummeted by 72% since the beginning of 2022 until now.
The company is still facing many problems in terms of its performance and the share prices are still declining. If the decline continues, the year-end losses may be higher than 72%.
At the time of writing, the share prices for Tesla are exchanging hands at a low of $113 per share.
Future of Bitcoin and Tesla
Bitcoin may be bearish now but its value may surge in the upcoming months. This is because the value of the dollar may plummet in near future due to the recession.
This can help in pumping the trading price of Bitcoin. On the other hand, Tesla only takes more hits from the rising recession fears and disrupted supply chains.
The supply chain issue may not be fixed until China fully recovers from COVID, which does not seem to be getting fixed any time soon.