Bitcoin Price Takes Deepest Dive Since 2020, Will BTC Bounce?
13 Mai 2022 - 6:00PM
NEWSBTC
Suffering the effect of the current bloodbath in the crypto market,
Bitcoin’s (BTC) price on May 12 hit its lowest valuation of $26,350
since December 2020. The ongoing bearish trend has remarkable
similarity with the previous mid-season bearish trend that lasted
from May to June 2021. In both market crashes, Bitcoin’s price
broke the resistance level of $30,000. Recently, it had dropped
more than it reversed back in June 2021 when the BTC’s valuation
stopped losing at $29,800. In contrast, its price in the current
market clash has touched the $26,3000 level. Related Reading |
Dogecoin Has Dropped 90% Since “The Dogefather” Debuted On SNL
Several macroeconomic factors impacted the crypto market in both
instances. For example, before 2021’s bearish trend, Chinese banks
prevented using crypto by disallowing crypto services for the
state’s financial sector. Then Elon Musk added fuel to the fire by
reversing his decision to include Bitcoin for Tesla payments.
Similarly, the distortion of COVID-19 caused some major countries
to step back from the blockchain industry; thereby, the BTC price
plummeted dramatically. Likewise, in the most recent downtrend,
geopolitical conditions and macroeconomic facts have decided the
fate of Bitcoin. First, the Russia-Ukraine conflict immensely
affected the crypto price, with regulators imposing strict rules
day by day at a time when Bitcoin is starting to grow worldwide.
Then legal ambiguity and Fed regulation of digital assets further
plunged back Bitcoin price. Bitcoin Holders Rushed To Exit Their
Assets Crypto investors have been withdrawing their holdings after
the recent slump, and many still hold on to losses and expect
crypto prices will rock on again in the future. According to stats,
16,967,726 wallet addresses currently took losses and broke
previous records. Crypto history has seen a similar peak on 19 Mach
2020. The unusual behavior of the crypto market compelled investors
to liquidate their assets, neglecting the losses they had taken.
That’s why the figure for the following metric has decreased. Now,
the number of crypto traders holdings 1K+ coins in their wallets
has reached a low of 2,234, and most importantly, this figure was
recorded on May 11. Again, May 11 set a new record of transactions
in the Bitcoin network as crypto holders rushed to exit their
investments. It has reached a 4-year new high of traded volume with
175,146.8 BTC. The recent volume of committed transactions has
eclipsed previous highs. Related Reading | TA: Bitcoin Gains
Momentum, Why Break Above $30K Is Crucial Considering the present
situation of the crypto market, the host of The Wolf of All Streets
Podcast, Scott Melker, commented that “the entire market is
reeling.” He added: I think that markets are in a full irrational
panic. The pendulum has swung to extreme fear, as it always does.
This causes people to sell assets at or near the bottom. Featured
image from Pixabay and chart from TradingView.com
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