Opinion Crypto Market sees a Pullback but Remains in the Bullish Space

Crypto Market sees a Pullback but Remains in the Bullish Space

November 28, 2020

Bitcoin recently came back into the global limelight as the price of the BTC token soared in a short time period. The same applies to all other digital tokens, as the bitcoin network pulled up other altcoins, just like the major networks like ethereum. The spectacular rise of the price brushed up with the 20,000 USD range, after coming over and clearing the last step, which is 19,000 USD. But, quickly after, the price began experiencing a strong pullback which also took in all other networks. Now, the price is back at the 16,000 USD range, while the ETH token of the ethereum network steadied at 500 USD.

Expectedly, the wider public is ready for the continuation of the drop that would plummet the market capitalization like it usually did after every big fail of a bull run. But, experts believe that the bitcoin network is still squarely in the bullish space. That means that they see the BTC token and the rest of the crypto market still making headways towards the old record and possibly even taking them over in the near future. The reasons for this are the same ones that were supporting the rally when it got going several weeks ago.

Incredible Year

No matter where the price of Bitcoin moves in the coming weeks, there is no denying that 2020 was an incredible year for this cryptocurrency network. In under 11 months, the price of a BTC token went up nearly 3 times. That process was spurred on by the unprecedented level of money printing from the central banks. They, of course, reacted to the ongoing coronavirus pandemic and the need to protect gravely struggling economies. Like in most economic crises, this one has any global implications.

Among them is the fact that for the first time ever big-name investors and even Wall Street entities are starting to pay attention to the cryptocurrency domain. The same attention one way or another has to translate into institutional investments, either by these entities or by other, equally big but potentially more adventurous once when it comes to financial diversification. Other more objective signals have also been coming from the corporate domain. These, probably better than anything else that comes from institutions, show that the mindset towards bitcoin has been irrevocably changed in the boardrooms of global economic institutions.

PayPal Bombshell

One of the key elements of the recent increase in institutional activity is, of course, the entrance of PayPal into the crypto exchange services. This huge online payment company has over 300 million users and represents arguably the most important business in the fintech field today. That applies to the waste parts of the world, as PayPal has a truly global presence. Soon, this digital company will begin offering its users the ability to buy, sell, and hold bitcoin tokens. Even now, before this service even got its rollout, the company is already buying huge amounts of BTC tokens.

Some even estimate that two out of three newly discovered bitcoin tokens are being snatched up by PayPal, more precisely Paxos, its cryptocurrency partner in this venture. That is not a big surprise as the company wants to offer an imposing level of digital liquidity to its customers. As these come from a range of fields and domains, from regular citizens who have otherwise very little interest in the tech products to crypto enthusiasts, esports players, and many more who are using digital currencies as a part of their everyday life, that token liquidity needs to be there. It will need even more of it once the platform is providing all of its services. That in itself is another massive element on the side of a continued bull run.


The key element of the present bull run is the simple fact that its sustainability is much higher than anything the crypto markets saw before. Back then, even with the massive media coverage, the bitcoin network in particular almost could not shake its public image. For the majority of people, that image included nothing at all because most individuals did not know something like a digital, non-national currency even existed. Others maybe knew something about it but considered it an offshoot of things like the Silk Road or similar criminal ventures.

Today, that image is very different. Even the naysayers from the years gone by now must accept a reality where bitcoin and other cryptocurrencies simply refuse to die or blow up like an imaginary balloon many consider to be. Besides, sustainability is also reflected in a range of very user-friendly means of procuring bitcoin. These include established applications like Cash app or other platforms, which provide an easy and user-friendly setup for both buying and holding crypto. That means that unlike 2013 and 2017, it is not just the weekend trader types who are going to invest money in bitcoin – it can be anyone.

Volatility Ahead

As waves of new users enter the crypto domain, the price of the same tokens will not stay stable. Instead, it will only add to its ready imposing level of volatility which is famously present in all aspects of crypto trading. That in turn means that numerous individuals seeking quick profit will find themselves with no payoffs and token funds that saw their price slashed in half in an incredibly short time. They will likely be estranged by this turn of events and some might even decide that that is more than enough experience they ever want from crypto.

After all, something like this happened every time that the crypto market took a nosedive. These levels of volatility will remain and in all likelihood, the current generation of new users will not be happy with them. That is why the current rise in cryptocurrency users will ebb and flow with the changes to the token price and market capitalization of these networks. But, even that does not change the fact that the current rise in price appears to be a certain sign of an incoming bullish period.