Bitcoin Is in Dangerous Waters! The Analytical Company Presented Evidence: Such Levels Are Inevitable!
While Bitcoin (BTC) continues to count in place, leading analysts have warned that the decline in BTC may deepen.
The Bottom Is Yet to Be Seen!
Although Bitcoin has fallen by almost 80% from its peak, some analysts claim that the decline will continue. Analysts of the analytical company CryptoQuant shared important information about the BTC price movement. Experts have reported that BTC has been selling at a loss for many investors lately, as it is far from the all-time high. According to the report, the percentage of investors who are currently selling their BTC may not be enough for us to reach the end of the bear market. Pointing to the SPORTS metric, an indicator that measures the profit or loss of each transaction made on the market, CryptoQuant’s analysis suggested that many investors are currently selling their Bitcoins at a loss. This critical data means that we are nearing the end of the bear market, but the bottom level has not yet been seen. However, strategists cautioned that the situation is not so simple, pointing to UTXO(Unspent transaction output), another important metric.
Thanks to the UTXO model, the path followed by the miner from the creation of crypto coins to the end user’s wallet can be determined. CryptoQuant claimed that 70% of UTXO is still profitable, but well below the 50% in the last few bear markets. According to the report, most of the people currently selling at a loss are relatively new entrants. Bitcoin has fallen by about 75% since its all-time high last November. However, analysts have warned that Bitcoin could fall as low as $9,500 if it follows past bear cycles.
FTX: Side Effects May Persist!
The FTX scandal has been a terrible disaster for cryptocurrency investors. While the image and trust issue arose, calls for regulation arose. While the effects of the FTX crisis continue, the cryptocurrency market is also going through a difficult period. FTX’s debt of $3.1 billion and the fact that it is creating a domino effect in the sector is causing concern. Bitcoin had lost value after the crisis on the Mtgox exchange.
However, it later recovered in the medium term. BTC continues to remain vulnerable to sales and crises. According to experts, in order for BTC to gain momentum, the Fed needs to step back from monetary policy.
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