No good news on the crypto front this week once again. Even though Bitcoin saw a price rise of around 6% early on Monday, it tumbled right after it, diving under $19,000 once again. Currently selling in the mid-19,000s, there’s no sign of going up again, especially as the dollar goes strong. There are many reasons for the most recent dips, but we won’t repeat them anymore. What’s clear is that the market will remain in the red for now, and further pressure on investors will probably make the price go lower.
Many analysts believe that the recent dips show the price isn’t as critical as before. It means that moves below $19K may act as accelerators instead of being critical levels. On the Fear & Greed index, the point is at Extreme Fear, so once again, it’s not a great time for crypto investors and holders.
Could Lower Prices Accelerate Sell-Offs?
That’s what many analysts think. Prices dipping lower than the current levels will accelerate sell-offs, so the price level isn’t as critical as previously thought. As a matter of fact, an anonymous recent survey found that users believe it more likely for Bitcoin to hit $10,000 instead of going $30,000. Bitcoin is dragging altcoins down too, so the whole market is in disarray.
What should happen for the market to recover? Right now, it’s a long shot, but experts think that confidence from longtime Bitcoin holders will surely help. Not that it’s happening for sure, but right now, those longtime holders are experiencing losses and facing massive pressure. Metrics show that actualized losses are mounting for the many longtime Bitcoin holders, which is a metric that compares the price at which investors sell coins to the price of the coins bought.
Right now, that metric is at the lowest point since January 2019, showing that investors are selling coins with a 33% loss.
Bitcoin Reveals the Shocking Truth
Everyone thought that 2022 was the year of crypto until the market took a price tumble. The bearish trend continues amidst a pending financial and gas crisis. Bitcoin and cryptocurrencies seem closely linked to other commodities, and that’s the reason they’ve taken such a tumble. The real problem is that there’s no light on the horizon.
A recent online survey done anonymously showed that people think Bitcoin’s price is more likely to hit $10,000 than race up to $30,000. The big drops will continue and such a thing is not far from the truth. Over $2 trillion have vanished from the market recently, and we fear that further loses are expected.
Bitcoin has lost two thirds of its value since November 2019. The latest time to hit $10,000 was December 2020, but after that, the prices truly blossomed. So, maybe things aren’t that dark right now. Sure, this year looks a bit bleak, but maybe the prices should take a big tumble before the market recovers.
Cryptocurrencies are here to stay, but we’ll all have to soldier on before things improve.