Der Preis von Bitcoin war in den letzten Tagen in Trümmern und hat seit dem 5. Mai insgesamt 6.000 $ seines Dollarwertes verloren.
This represents a drop of more than 16.5% in four days. Many other cryptocurrencies followed suit, resulting in a whopping $300 billion hit for the entire market capitalization of the cryptocurrency.
More importantly, BTC has ended in the red for six straight weeks — something that hasn’t happened in 8 years. With that in mind, let’s take a closer look at some of the possible reasons for the downturn.
Global macroeconomic uncertainty
2022 has so far played out as a year of high market volatility, with many decisions made in the past having consequences – albeit for better or worse. A case in point is the COVID-19 pandemic, and many governments have bolstered their struggling economies through numerous stimulus packages. This led to what many have dubbed the cycle of endless money printing, leading to sky-high rates of inflation.
Although April numbers aren’t out yet, the United States Bureau of Labor Statistics (BLS) reported last month that the consumer price index hit 8.5%, breaking another 40-year high.
To the rising inflation To combat this, the Federal Reserve has started raising interest rates, with the latest hike being 0.5%.
The general uncertainty caused by rising inflation has taken its toll on both retail and Wall Street investors as markets have steadily bled dry for the past few weeks, with the intensity only increasing in recent days.
For example, since May 5, the S&P 500 is down over 4%, the Dow Jones Industrial Average (DJI) is down nearly 6%, and the NDX is down 6.2%.
Although different in nature, cryptocurrencies remain in notable correlation with traditional stock markets and are widely perceived as a risky asset. In turbulent times these tend to be liquidated first – hence the turbulent price action of recent times.
Stock market inflows are skyrocketing, big players are selling
Data from glass node revealed that exchange inflow volume adjusted for a 7-day moving average hit a 3-month high of 1,755.021 BTC today.
📈 #Bitcoin $BTC Exchange Inflow Volume (7d MA) just hit a 3-month high of 1,755.021 BTC
The previous 3-month high of 1,729.605 BTC was observed on May 8, 2022
View metric: https://t.co/1S6EbDkdOO pic.twitter.com/8kSJPOLJXW
— Glassnode Alerts (@glassnodealerts) May 9, 2022
This usually indicates whales are exiting the market by selling their coins and could be interpreted as preparing for a longer downturn.
This is also supported by a report from another analytics resource – CryptoQuant. According to an update today Big players and whales sending 10,000-10,000 BTC to exchanges allocate more than retail investors – interestingly more nervous behavior than retail.”
The analyst also concluded that this could be due to larger players unwinding crypto-related risk positions to hedge their equity positions.
glass node also revealed that during the surge between May 4-5, over 26.5k BTC “open interest in value” was brought to market, but almost all of it (around 25k BTC) was closed during the subsequent sell-off.
Technology in turmoil
Technical indicators are not particularly bright for BTC either. As CryptoPotato As reported earlier today, the cryptocurrency closed six consecutive weeks in the red and opened the seventh also in decline.
The market hasn’t seen this in 8 years and it’s certainly evidence that investors are trimming their positions.
Another metric to consider is the fee-to-reward ratio. The data show that he has been since the previous all-time high has fallen significantly – according to analysts an indication of an imminent one bear market.
The number of address losses – adjusted for a 7-day moving average – also hit a 2-year high.
The zone around $37,000 was a sizeable support where many investors provided plenty of liquidity, but now that that’s gone, buyers might consider the $30,000 area next.
All of this has pushed the market into a state of extreme fear. The last time sentiment was this negative was on January 25th.
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Source: Crypto News Deutsch