Bitcoin has fallen into a bear market, dropping 23% from January highs amid rising investor skepticism. Key factors include a significant outflow from Bitcoin ETFs, recent crypto scandals, and a major exchange hack. Altcoins are also facing declines, and while the market is in fear, some analysts maintain a cautious optimism towards potential recovery in the long run.

Bitcoin has officially entered a bear market, experiencing a notable decrease of 23% from its peak in January. Following the price decline, Bitcoin has dropped as much as 23.4%, resulting in an intraday low of $83,740 on Wednesday. This downturn signifies a stark shift for an asset that, a month prior, was reaching record highs amidst a previously bullish market.

In conclusion, Bitcoin’s recent transition into bear market territory stems from a confluence of factors, including market sentiment, sector scandals, and policy disappointments. The cryptocurrency sector, especially altcoins, faces significant challenges as investor confidence wanes. Despite the current downturn, long-term analysts remain optimistic regarding future market cycles.

Original Source: www.businessinsider.com

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