As Bitcoin hits a new low, other cryptos also plunged, including Ethereum, Solana, and Ripple. The market capitalization of the crypto industry even fell to $1.37 trillion, which is the plight of investors.
BTC prices have fallen below $29,000 in what has been a terrible month so far. Even the metrics suggest a bearish run for Bitcoin. Such situations often affect the entire crypto market. Investors should therefore closely follow these patterns to get a complete picture of Bitcoin in the current market situation.
Adieu « Moon-boys » ?
As Bitcoin fell to $28,300, moon-boys were probably the most maligned group on social media. Regularly, they have observed a meteoric rise for the flagship crypto. But unfortunately, the current situation is only an insult to their wounds.
The number of whales just hit an 18-month low at 1,776. A similar low was seen on January 19 at 1,781. Whale movements are particularly important in crypto markets as they drive sentiment with their shares. The movements of the whales are closely followed by the shrimps which are likely to note these exits.
Source : Glassnode
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The Bitcoin community is suffering more, with daily exchange flows indicating a worrying trend. As Glassnode tweeted, daily forex inflows reached a whopping +$801 million. It lies in market uncertainty and apprehensions over whale FUD sentiment.
The MVRV metric is another that signals a bearish run for a few more days, at the very least. The ratio was around 1.2, which is the lowest point in more than two years since April 2020. This also means that many investors are holding the asset in unrealized losses and the asset is close to the undervaluation.
Source : Glassnode
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Hear from the experts
Scott Melker, host of the podcast The Wolf of All Streets, explains
“Bitcoin has fallen alongside global markets as traders and investors take risks amid recession and inflation concerns. Bitcoin fell below 30K, the end of which was largely the result of Bitcoin being dumped in the market by the Luna Foundation Guard in a desperate attempt to repair the UST peg. It was insult to injury on a bad day.
Konstantin Boyko Romanovsky, CEO of Allnodes Inc, insists investors keep the faith. He says,
“We are past the point where blockchain and cryptocurrencies can suddenly become obsolete. Thus, a sharp drop in cryptocurrency prices could be a chance to enter or re-enter the market.
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