Bitcoin continues to send cold sweats to its investors. However, the crypto sphere has reason to keep hope for the future.
A historically bad time for Bitcoin
A week after the second fall of the first cryptocurrency, Bitcoin enthusiasts and holders have reason to worry. Indeed, the token has just recorded the worst period of loss for its investors since its inception.
The facts date back to last weekend. Already weakened by its brutal fall five days before, Bitcoin did not resist the pressure and showed high volatility. The phenomenon would be due to the sale of the tokens, whose purchase price fluctuated between 18,000 and 23,000 dollars. A trading madness that has strongly affected the price of Bitcoin and its holders over the long term. Indeed, the latter would have resold around 178,000 BTC for a price below the $23,000 threshold. Most of them had bought their coins at their highest price (69,000 dollars) to resell them at 18,000 dollars, which is 75% less than their sale price.
According to an analysis by Glassnode, there are more than 7 billion losses on the side of the holders of the token. The company also estimates that between 1.5 and 2 billion have been lost daily over the past three days.
Despite a panicked public, Bitcoin continues to resist
If last weekend was not a cakewalk for the crypto sphere, the first cryptocurrency has not yet said its last word. It fell below $20,000 in the last three days, then quickly climbed back up to hold nearly $21,000. However, the price still remains unstable and the value of Bitcoin may continue to fall in the coming days.
However, the new fall of the small orange coin would not be a coincidence since it would be directly linked to the behavior of its holders. For Coinglass, Bitcoin reportedly saw nearly $436 million in liquidation in recent days. It would be this large sum that would harm the price of the token.
Could the community therefore be at fault in this situation? It would seem because it is these waves of mass resale that are driving it ever lower. A phenomenon that is not likely to improve as the negative sentiment is present on the market. This catastrophic weekend will only have exacerbated the panic of the holders. As for aggressive traders looking to resell for profit, they also have their share of the blame.
So it would seem that custodial digital assets are the best thing to do if you want to give Bitcoin time to rebuild. Because time is the best (or the worst?) enemy of the token and, in the long term, it is predicted a bright future with a value of 100,000 dollars. So there are solutions for the crypto sphere to help the coin regain color. Among these, the most effective remains to do nothing.
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Bitcoin: Weekend of Record Losses for Investors – BeinCrypto
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