Even though Bitcoin is still the most valuable cryptocurrency token on the market, it has not been able to shake off a bearish trend that has brought it down from historically high pricing levels achieved a couple of months ago.
Bullish investor have attempted to boost the price of Bitcoin back towards the $50K level, which would still be $10K lower than the price it briefly held earlier this year. The most that these hopeful traders have been able to do has been a series of relief rallies, and the most recent took place on June 28.
Bitcoin has struggled to gain momentum since the early days of the summer. Bitcoin's price fell below $29K at one point, which makes the ongoing $35K rally an expected reaction in this attempt to push it back to previously high pricing levels. For now, the Bitcoin price looks to be sitting around $30K or $35K and, as a reminder, this is still an artificially high price for the currency. On the other hand, even some companies considered to be Wall Street darlings have been getting an unfair bit of press even as the American economy continues to recover from the negative effects of the coronavirus pandemic.
All in all, it does not seem as if Bitcoin will be able to fully recover over the next few weeks. Technical traders are out in full force to make a quick buck in the midst of high volatility in the markets. One of the problems faced by Bitcoin is that financial regulators are still not convinced that this token would be suitable as a currency with everyday circulation. Bitcoin transaction volumes are still predominantly generated by trading activity that is highly speculative, and this is one factor holding back its progress on the economy.
Things could get better for Bitcoin in the future. Let's not forget that this token is now legal tender in El Salvador, and the government there is giving away millions of dollars worth of Bitcoin to local residents in an effort to get circulation going. The fiat currency of El Salvador is the U.S. dollar, which makes Bitcoin a direct competitor.