Bitcoin Investors Still Bullish, Despite Signs of Bear Market Ahead

Bitcoin Investors Still Bullish, Despite Signs of Bear Market Ahead

Bitcoin investors appear to be buying the recent dip and tucking the cryptocurrency away as a bet on future price appreciation.Bitcoin fell Thursday to $51,358, a 16.57% decline from the all-time high of $61,556. A bear market is defined as a 20% drop from its high.But there appears to be no panic and the world's largest cryptocurrency by market cap rebounded Friday to $53,912 in midday trading, a gain of 4.87%Still, some analysts urged caution."Even if a proper sell-off does not materialize for stocks and other risk assets today, Bitcoin traders need to proceed with caution because in recent days we have been getting more and more signs that the appetite for risk is slowly fading away across the financial markets," Fawad Razaqzada, an analyst at ThinkMarkets, said in a research report. "Bitcoin could be the next domino to fall as investors rush to book profit."NEW YORK, NEW YORK - FEBRUARY 08: A bitcoin ATM is seen inside the Big Apple Tobacco Shop on February 08, 2021 in New York City. (Photo by Michael M. Santiago/Getty Images)

Bybit, a competing online trading platform, urged investors to beware of a bear market."The signs of exhaustion we've seen recently have temporarily knocked Bitcoin