For How Long Will Bitcoin Continue With “No Sign Of Recovery”?

Bitcoin Wallets Holding 1 BTC Archived New All-Time High
  • BTC’s liquidation in the last 24h accounts to $1.11B.
  • Bitcoin and Ethereum crashed below 50% from their all-time high (ATH).

The global crypto market witnessed a 10% drop in terms of capitalization from $1.65 trillion USD to $1.45 trillion USD in the last 24 hours. Bear markets continue to overpower the two largest cryptocurrencies, Bitcoin and Ethereum. 

For the past week, BTC and ETH have set a peculiar trend of breaching down their lower support levels of $30,000 USD and $2,300 USD. At the time of writing, according to CMC, the price of BTC stood at $ 31,450 USD and that of ETH stood at $2,382 USD. Due to this, all other cryptos are subjected to hard crashes and continue to trade in red. 

The worst case scenario was exhibited by LUNA, Terra ecosystem’s native coin. This altcoin had a 50% drop in the last 24 hours from  $61.32 USD to $ 29.46 USD. Due to the network congestion on Terra, Binance, the largest crypto exchange, temporarily suspended the withdrawals of LUNA and its stablecoin TerraUST (UST).

The On-going Dips 

Bitcoin fear and greed index drops down to 10, the “extreme fear” zone for the crypto. Despite the current dips and bearishness, the exchange inflows of BTC is quite impressive amidst the on-going negative sentiment. As per statistics, 212,320 BTC is received by exchanges in the last 24h. The increase in inflows indicates an increase in selling pressure in the market. On Tuesday, the Central American, El Salvador, had just bought 500 coins when the price was at an average of $30,744 USD. The country has also revealed the layout of Bitcoin city.

Changpeng Zhao, CEO of Binance, in his tweet, compared the current BTC bear market with those of the past, 2015-2021 markets, saying the “flat” trend may continue for a few years too. He suggested the investors in panic to lower their “investment size by 2x or 10x” to hold their positions during the dip. 

An engineering graduate who is passionate about writing and loves the very existence of crypto. Trading forex currency keeps me busy when I am not writing and analysing the crypto world.