Suffering from the impact of the current bloodbath in the cryptocurrency market, Bitcoin (BTC) price reached its lowest value on May 12 at $26,350 since December 2020. The ongoing downtrend bears a striking similarity to the previous mid-season downtrend that ran from May to May. . June 2021.
In both market crashes, the bitcoin price broke the $30K resistance level. More recently, it fell more than was reversed back in June 2021 when the BTC valuation stopped losing at $29,800. On the other hand, its price in the current market clash touched the level of $26.3000.
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Several macroeconomic factors affected the cryptocurrency market in both cases. For example, prior to the downward trend of 2021, Chinese banks banned the use of cryptocurrencies by not allowing crypto services to the country’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 has caused some major countries to pull back from the blockchain industry; Thus, the price of Bitcoin dropped significantly.
Similarly, in the recent downtrend, geopolitical conditions and macroeconomic realities have decided the fate of Bitcoin. First, the conflict between Russia and Ukraine significantly affected the price of cryptocurrency, as regulators imposed strict rules day in and day out at a time when Bitcoin began to grow around the world. Then legal uncertainty and the Federal Reserve’s regulation of digital assets drove the bitcoin price down.
Bitcoin holders rushed out of their assets
Crypto investors have pulled their holdings after the recent recession, and many are still holding on to losses and anticipating cryptocurrency prices to rise again in the future. According to the stats, 16,967,726 wallet addresses are currently losing losses and breaking previous records. Crypto history experienced a similar peak on 19 Mach 2020.
The unusual behavior of the cryptocurrency market has forced investors to liquidate their assets, ignoring the losses they have incurred. That’s why the next scale number has gone down. Now, the number of cryptocurrency traders with 1K+ coins in their wallets has reached a low of 2,234, and most importantly, this number was recorded on May 11.
Once again, May 11th set a new transaction record in the Bitcoin network as cryptocurrency holders rushed out of their investments. It reached a new 4-year high in trading volume with 175,146.8 BTC. The recent volume of committed positions exceeded the previous highs.
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Given the current state of the crypto market, The Wolf of All Streets Podcast host Scott Melker, hung That “the whole market is reeling.”
I think the markets are in an irrational panic. The pendulum swung into intense fright, as always. This causes people to sell assets at or near the bottom.
Featured image from Pixabay and chart from TradingView.com