As bitcoin reached a new low, other cryptos fell similarly, including Ethereum, Solana, and Ripple. The market cap of the crypto industry also fell to $1.37 trillion, representing the plight of investors.
BTC price has dropped below $29,000 in a terrible month so far. Even the metrics are indicating a bearish run for Bitcoin. Such situations often have an effect on the entire crypto market. Investors should follow these patterns closely to get a complete picture of bitcoin in its current market conditions.
Goodbye “moon-boys”?
The Moon-Boys were perhaps the most infamous group on social media as Bitcoin fell to $28.3K. On a regular basis, they keep an eye on a meteoric rise for the major cryptos. But unfortunately, the current situation is nothing but an insult to his injuries.
Whale numbers hit an 18-month low of 1,776. A similar low was seen on January 19 at 1,781. The movements of whales are particularly important in the crypto markets as they tend to lead the sentiment with their actions. The movements of the whales are followed by shrimps which are likely to notice these exits.
There is more pain for the bitcoin community with daily exchange flows indicating a worrying trend. as glassnode tweeted, the daily exchange inflow reached a massive +$801 million. This is rooted in the market uncertainty and fears which are led by the FUD sentiment by the whales.
The MVRV metric is another which is indicating a bearish run for at least a few more days. The ratio was around 1.2 which is the lowest point in two years since April 2020. This also means that a lot of investors are placing the asset at an unrealistic loss and the valuation of the property is going down.
hear it from the experts
Scott Melker, host of The Wolf of All Streets podcast, says:
“Bitcoin has fallen along with global markets as traders and investors risk facing recession and inflation concerns. Bitcoin plunges below 30K, whose tail end guards the Luna Foundation in a desperate attempt to fix its peg. It was an insult to injury on a down day.”
Konstantin Boyko Romanovsky, CEO of Allnodes Inc., stressed on maintaining confidence from investors. He says,
“We have passed the point where blockchain and cryptocurrencies may suddenly become obsolete. So a sharp drop in cryptocurrency prices could be a chance to re-enter or re-enter the market.”