Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
Bitcoin funds saw record outflows of USD $453 million last week and Glassnode says it’s the worst bear someone who believes that prices in a given market will decline over an extended period. Such a person might be referred to as “bearish.” cycle in history, but other metrics suggest increases.
- BTC investment funds recorded the largest outflows in USD.
- Glassnode says it’s the worst bear cycle in history.
- BTC balance on exchanges falls to 3-year lows (bullish indicator).
- Polarized investor sentiment: Where is the bottom?
Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. sinks below USD $21,000 as institutional traders are dumping a collective market sell-off that occurs when large quantities of a particular cryptocurrency are sold in a short period of time. the flagship cryptocurrency at a record pace. But all is not lost: other metrics suggest that the downtrend could be close refers to the closing price; similar to the same term used in stock trading. to reversal.
The investment funds of Bitcoin recorded record outflows of USD $453 million last week, according to a new report. recent report by CoinShares . The departures, which is possibly what caused the fall of the Bitcoin to a range close to USD $17,000, were the largest in terms of dollar value in the cryptocurrency’s history.
CoinShares said that, in In terms of assets under management (AUM), last week’s outflows were the third largest on record, representing 1.2% of total AUM for all the funds it tracks. The worst outflows, comparatively, were those recorded during the 2018 bear market, which accounted for 1.6% of total AUM.
According to the report, the departures, which focused on Bitcoin , deleted almost all entries for the last six months and left the entire AUM of Bitcoin at USD $24.5 billion, its “ lowest point since early 2021 ”.
Bitcoin funds see record outflows
Los fondos que rastrea CoinShares cryptocurrencies, such as popular ETPs, mutual funds and OTC oTC, or ‘Over The Counter’ is trading that happens directly between two parties, with no exchanges or trading platforms involved. trusts, are investment products that give traditional traders exposure to cryptocurrencies without having to hold the assets in custody. When investors buy a cryptocurrency, it is called an inflow, and it is usually a bullish signal. The opposite process, when they sell, is called an exit and is often interpreted as a bearish signal.
According to the report, the outflows came almost exclusively from Canadian exchanges and one specific unidentified provider. However, it wasn’t all negative, as other BTC fund providers also recorded inflows of around USD $70 million, “ highlighting the highly polarized sentiment the sentiment is the overall mood and attitude of traders and investors in regard to a particular asset or the whole market. among investors in digital digital technologies are these electronic tools that have the ability to generate, store or even process data. assets. “, dijo CoinShares .
In addition to Bitcoin funds backed by other assets, such as Ethereum a decentralized open-source blockchain with smart contracts functionality. , Short a trading technique in which a trader borrows an asset in order to sell it, with the expectation that the price will continue to decline. In the event that the price does decline, the short seller will then buy the asset at this lower price in order to return it to the lender of the asset, making the difference in profit. Bitcoin , Cardano, Tron y Polkadot reported total inflows of USD $30 million last week, and net outflows totaling USD $423 million, as shown in the following table Decrypt .
Mientras tanto, otros informes también hacen interpretaciones desalentadoras para el panorama más amplio, incluyendo uno de la firma de análisis Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. Glassnode which described the recent downward cycle as the worst in the history of the Bitcoin .
“ Bitcoin and Ethereum have traded below their ATHs (all-time price high) of previous cycles, which is the first time in history “said the firm in a saturday report in which he analyzes metrics such as 200-day moving average (MA), negative realized price deviation and net realized losses to highlight how the current cycle sets some historical precedents.
The worst bear cycle in history
However, and despite the oddities seen, Glassnode noted that there was no reason to think that this bear cycle was so different from previous ones; although what has been unusual is the response of investors to the downturn. The report was quoted by Cointelegraph .
Historically, bear market lows have been set with BTC declines of -75% to -84% of ATH, and with a duration of 260 days in 2019-20, to 410 days in 2015. With the current drawdown reaching -73.3% below the November 2021 ATH, and with a duration of between 227 days and 435 days, this bear market is now firmly within historical norms and magnitude.
As the global capitalization plunges below $1 trillion, a far cry from its November peak of USD $3 trillion, fear has gripped investors, who have opted to sell at historic losses. “ The recent price collapse to the USD $20,000 region was punctuated with the largest USD-denominated daily realized loss in history. “, he said Glassnode .
The firm concluded the analysis by noting that the cryptocurrency market an area or arena, online or offline, in which commercial dealings are conducted. is in the midst of a new capitulation capitulation is the process of selling assets or cryptocurrencies at a significant loss because you have lost hope or belief that it will ever increase in price. event, a move that recent miner the term “miner” can refer to both the person doing the mining and the device that is used to mine crypto. liquidations seem to confirm. As reported by DiarioBitcoin the BTC miners contributors to a blockchain taking part in the process of mining. They can be professional miners or organizations with large-scale operations, or hobbyists who set up mining rigs at home or in the office. sold more bitcoins of those who produced in May often a bearish indicator of market capitulation.
Bullish Winds for Bitcoin
However, despite these discouraging reports, not everything looks negative as other metrics seem to suggest the arrival of bullish winds. In a separate report, Glassnode indicated that the number of bitcoins deposited on cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. exchanges has reached a three-year low. . The graphics were shared on Twitter.
Previous 3-year low of 2,384,519.595 BTC was observed on 26 June 2022
– glassnode alerts (@glassnodealerts) June 27, 2022
“ Bitcoin balance on exchanges just hit a 3 year low of 2,384,477.040 BTC “wrote the analyst firm.
The metric is intended as a bullish price indicator, as it suggests that traders are less interested in selling. It also suggests that users are withdrawing their coins from trading platforms to deposit them in external wallets, a sign of confidence in the possibility of a future price hike.
Un informs of U.Today also picked up other metrics that show bullish signals for Bitcoin including the TD sequential technical indicator, the linear regression channel and the relative strength index. Broadly speaking, these data suggest that the bulk of the liquidation liquidation refers to the conversion of an asset or cryptocurrency for fiat or its equivalents. of Bitcoin has already occurred and that the cryptocurrency could see a reversal of the downtrend.
While these analyses suggest that the price bottom may be near, the macroeconomic outlook appears to be less encouraging. With inflation a general increase in prices and fall in the purchasing value of money. accelerating and interest rates rising aggressively in the face of recession fears, one cannot rule out the possibility that, before we see increases, there may be further declines to Bitcoin .
- Bloomberg analyst Mike McGlone notes that the economic scenario could be very good for Bitcoin and other assets.
- University of California professor Nicholas Weaver says cryptocurrencies are not about investing but “basically gambling.”
- China’s Communist Party newspaper warned Bitcoin could “go to zero”
Article by Hannah Estefania Perez / DiarioBitcoin
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