The recent developments in the market have reduced the pain tolerance of crypto investors who were already suffering from the May crash. As global indices begin to tremble further, what does the future of crypto assets look like now?
A living nightmare, maybe?
The crypto market has suffered a huge decline since June 11. Bitcoin [BTC] Ethereum is currently up 6% and below $27,500 [ETH] Worse with a 12% hit and below $1,500. But that is not all as most of the major altcoins today are also losing their positions.
According to a recent sentiment studyAfter the May debacle, the average returns of traders have again fallen into negative territory. Sentiment used the MVRV-30 day metric on the major cryptos and the results were terrible with only ADA’s neutral returns. Bitcoin and Binance Coin are negative and are stuck in the semi-opportunity zone. Ethereum, on the other hand, is back in the opportunity zone again after falling as low as February 2021 price.
The equity markets are being slaughtered recently for the CPI data released by the US recently. According to data published by the US Bureau of Labor Statistics, the Consumer Price Index rose 1% in May. This puts the annual inflation rate in the United States at a 41-year high of 8.6%. according to a wall street journal In the survey, economists had estimated the May CPI at 8.3%, marking a significant miscalculation of 30 basis points.
The inflation report had a huge impact on the risk-asset industries, ultimately correcting the crypto industry. According to another child Tweet, inflation and debt concerns were doing the rounds on social media as major altcoins hit local bottoms. Interestingly, the last three spikes of interest in this subject affected all local bottoms.
symbolic response
Bitcoin recently crossed $32,000 during May, recovering from the crypto crash. But after the latest inflation update, it has dropped more than 6.5 percent to below $27,500. Bitcoin’s actual range recently hit a seven-month low of $447.6 billion with the previous low seen on June 10. This is another worrying sign for the crypto community, with King Coin struggling to maintain its position at the top.
The situation for Ethereum is far more dire, despite Ropsten’s recent merger with Beacon Chain. The second-largest cryptocurrency by market cap declined 12.8% to hit its lowest point since February 2021. ETH is currently trading at $1,451 and is down about 19% during the week.
according to glassnode TweetKnowing the percentage in profit, Ethereum hit a 22-month low at 55.6%. Intraday MVRV is another metric showing a crack in the network after hitting a two-year low of 0.894. This is a major blow to the Ethereum community which has already pushed the ‘difficulty bomb’ today into August.
This explains the state of the crypto market today which has fallen by $1.10 trillion and down 8% in the last 24 hours. Experts believe that the worst is yet to come with rising uncertainty among riskier assets. Peter Schiff Warns Investors Not to Buy “Bitcoin” This Fall $20K and Ethereum Looks Likely to Crash For $1K. ,
it can be a rough weekend #crypto, #bitcoin Looks poised to crash to $20K and #ethereum To do $1K. If so, the overall market capitalization of about 20 thousand digital tokens would fall below $800 billion, which was about $3 trillion at its peak. Don’t buy this dip. You will lose a lot of money.
— Peter Schiff (@PeterSchiff) 11 June 2022