After the final stop of cryptocurrency farms in several Chinese provinces, the last optimism among many market participants has dried up. Bitcoin, which had held on for the past week in anticipation of large investments, collapsed yesterday. Most likely, the fall would have been even more painful if it weren’t for MicroStrategy. Which bought $ 500 million worth of Bitcoins on the same day.
The Bitcoin rate on the Binance crypto exchange fell below $30 thousand for the first time since January this year. At the minimum, altcoin quotes fell to $ 29.2 thousand. Over the past day, it fell by 9%. The market capitalization of the asset decreased to $ 560 billion,
Today the situation continues to develop dramatically, and the mood has changed to bearish. It is customary to call a position in the market when a large-scale depreciation of any asset expected. In this case, the following happens: when cryptocurrency holders massively transfer money to exchanges – wait for the fall in the value of Bitcoin. When they withdraw cryptocurrency to their personal wallets, it is time to wait for the growth of the cryptocurrency rate. Today, everything is developing according to the first scenario, when a record entry of digital money into exchanges is recorded.
Negative inflow to cryptocurrency funds
The company’s chief executive, Ki Young Ju, noted that the whales have indeed begun to sell assets. This reinforces the bearish sentiment in the market.
However, Young Ju didn’t rule out that the bearish sentiment will not last long. According to him, the trend may reverse within a few weeks. Since in the long term the market looks attractive in terms of the balance of supply and demand.
In response, one of the users posted a graph that illustrates three episodes of mass sending Bitcoins to exchanges. This didn’t stop the price of the first cryptocurrency from breaking through the $20,000 level at the end of December. When the previous bull market cycle was in full swing.
According to a recent report from CoinShares, in the week ending June 21, $ 79 million in assets were withdrawn from bitcoin fund wallets. Analysts say this is also a sign of the prevailing bearish sentiment.
The company stressed that its specialists have been recording a negative inflow of funds into cryptocurrency funds for seven weeks in a row. The last time this was observed in 2018.
Earlier, JPMorgan experts also found confirmation of Bitcoin’s transition to a bear market.
There is talk from all sides about the onset of a bearish crypto market – a period during which the prices of digital assets are constantly falling. Bitcoin is once again being buried and a long crypto winter is predicted. If the pessimistic forecasts are correct, then this time the bull market ended too quickly – most experts were sure that it would last at least until autumn or winter.
But maybe the pessimists were in a hurry, and we see not a trend change, but only one of the predicted corrections?