Will Bitcoin bounce back? 

The recent bull run and halving event has once again cast Bitcoin and the wider crypto industry in the spotlight.

Prices are being closely monitored, and there is renewed discussion on whether the decentralised finance sector has an enduring role to play in transforming and challenging the traditional finance sector.

Yet with the price now hovering between $65,000 and $60,000, there are questions whether BTC will effectively bounce back.

Rhys Merrett, Head of Tech PR, at The PHA Group, said that while the general media attention on BTC is positive, the reporting narrative surrounding BTC and cryptocurrencies remains short-term.

Merrett said, “Part of the reason why public sentiment towards Bitcoin and cryptocurrencies varies is due to the general narrative that has played out in the media.

“Up until the pandemic, there was a tendency to position these coins as an asset with the potential to deliver high returns. This was backed by the price growth of BTC and ETH through to meme coins. However, the volatile price swings that eventuated in the crypto winter brought into question the longevity of such alternatives to fiat currencies and tradable assets.”

Speaking on the latest developments, Merrett highlighted that the industry needs to be put into context.

“There are significant differences between BTC and cryptocurrencies, and the technology powering them is multilayered. Speaking about the industry in broad brushstrokes overlooks the intricate details that are integral to the industry’s evolution.

With BTC price decreasing following the halving event, it is being questioned whether BTC’s bull run will be short-lived. Merrett argues it is all about perspective.

“2024 has so far been a significant year for BTC. The bull run and launch of ETFs have demonstrated a general industry backing of BTC’s longevity. However, the focus remains on intraday price swings rather than BTCs applicability as a commodity that can compete against fiat currencies over the long-term. The price is only part of a bigger story that is not being told or fully realised.

“If we take a step back and look at the performance of BTC over the last decade, there’s no denying the enormous price gains that have been made. However, price should not be only the metric being used to measure the health of BTC. ”

With ongoing conversations on regulations, price swings and ETF launches, the conversation on BTC will remain ongoing. A long-term perspective seems warranted, backed by an observation of the daily developments.