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CRYPTO SAILING FOR THE BEAR MARKET, IS IT GOING TO RECOVER?

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CRYPTO SAILING FOR THE BEAR MARKET, IS IT GOING TO RECOVER?

Cryptocurrencies are currently experiencing a bear market.

A significant call that should not be taken lightly by crypto investors and experts likewise. Two times this year, analysts have issued premature bear-market calls based on an off-the-shelf criterion (a 20 per cent drop in a market benchmark).

Bitcoin (BTC, -0.15%) is the general market benchmark in the cryptocurrency world. Bitcoin’s market dominance, or its percentage of all cryptocurrencies’ projected total market value, has dropped to the mid-40s, and it still has no analogue in the stock market. Apple, the S&P 500’s top business with a $2.2 trillion market cap, would be a $17 trillion corporation if it controlled as much of the S&P 500’s overall market cap as bitcoin does of cryptocurrencies.

The cryptocurrency market had its worst drop since last year’s COVID-driven meltdown on May 19. BTC plummeted 33% in a single day, reaching a low of 29,000 USDT at one point. When we look at the decrease from Bitcoin’s all-time high of 64,847 USDT per OKEx spot pricing on April 14, we can see that the most well-known cryptocurrency has lost around 55 per cent in the last month. Meanwhile, ETH and other significant cryptocurrencies lost more than 60% of their value before bottoming out.

On the path to new all-time highs, such as bitcoin, 20% losses are persistent. By establishing a simple technique earlier this quarter for evaluating whether such a collapse (or increase) has signalled the start of a new market regime: a 20 per cent shift in the CoinDesk Bitcoin Price Index (XBX), which is followed by at least 90 days in which bitcoin does not recover to its prior high (or low).

On Black Wednesday, positions worth $8.61 billion were liquidated across derivatives exchanges, four times the magnitude of the flash crash on March 12 last year. This figure is still lower than the all-time high of $9.795 billion in liquidations set on April 18 of this year.

CRYPTO SAILING FOR THE BEAR MARKET, IS IT GOING TO RECOVER?

Several cryptocurrency exchanges, including Coinbase, Binance, and Huobi, suffered disruptions due to the massive drop. As a result, leveraged traders had a hard time providing collateral to their precarious positions, contributing to the staggering liquidation number. OKEx, on the other hand, experienced no API unavailability, and the matching engine delay was just approximately two milliseconds.

CRYPTO SAILING FOR THE BEAR MARKET, IS IT GOING TO RECOVER?

Using this technique, the graphic above monitors cryptocurrency bull and bear markets throughout time. On April 14 (UTC), the XBX achieved an all-time high of $64,888.99. It had dropped by more than 20% to a low of $50,500 by April 22. (Since then, it has further dropped to $28,825.76.) There are 24 days left before the 90-day mark, as of Sunday.

Predicting that bitcoin would not return to $65,000 in the next three weeks isn’t exactly a risky bet. However, this is Bitcoin. The XBX is now trading at $33,493.55 at the time of writing. It would be a 93.7 per cent gain if it could reclaim its ATH. Since XBX’s launch in April 2014, bitcoin has completed at least 25 such 24-day runs.

Spot Market Alternatives

Alternatives that are currently easing spot market buying pressure:

GBTC Discount: Since February, shares of Grayscale Bitcoin Trust (GBTC), the largest bitcoin fund, have been trading at a discount. This is unlikely to alter as a substantial number of the trust’s shares approach their lockup expiration in July. Although GBTC cannot be redeemed, some investors who would have purchased bitcoin on the spot market are likely to take advantage of the drop in price available to them due to the current market state.

ASIC Glut: Beijing’s ban on bitcoin mining appears to be more than simply a press announcement from the government. Miners are closing their operations throughout China, resulting in a deluge of idle mining equipment.

Bitcoin mining is not for the weak heart or those short on cash, but it does offer investors the chance to buy bitcoin at a lower price than the current market. It’s uncertain if idle Chinese machinery can be used in North American operations or other emerging mining hubs. If there are, there may be a shortage of hosting space. Nonetheless, some significant investors who would ordinarily purchase and hold are likely considering the more favourable capital-expenditure estimates in a mine-and-hold option.

A Toothless Market

In April, there is evidence of a retail-driven uptick: On spot markets, altcoin volumes, including meme currencies like dogecoin (DOGE, -2.5 per cent), surpassed bitcoin volumes. Retail buying now appears to be a thing of the past.

Meanwhile, indicators of institutional participation, such as LMAX Digital volumes and open interest in CME bitcoin futures, indicate no evidence of institutional buyers coming in to purchase the dip and replace retail buyers.

CRYPTO SAILING FOR THE BEAR MARKET, IS IT GOING TO RECOVER?

These tea leaves might be deceiving, but the bottom line is that nobody is in charge right now. Active addresses are down on both the Bitcoin and Ethereum networks, according to network statistics.

What Do the Experts Say?

A market interregnum might signal a brief down market in between bull cycles. Network data back up this research.

Bitcoin lacks real “fundamentals” because it does not represent a claim on future cash flows. Bitcoin and other crypto tokens, on the other hand, have a set of indicators that reflect network activity. Going so far as to apply Metcalfe’s Law to the bitcoin price (which forecasts impact rather than value), but network data can add another layer of insight, particularly when paired with market data.

CRYPTO SAILING FOR THE BEAR MARKET, IS IT GOING TO RECOVER?

The figure above, taken earlier this week, indicates that “young coins,” or bitcoin that has moved within the last six months, have become a rising percentage of the bitcoin that has progressed during recent sell-offs. Short-term investors are selling, while long-term investors are staying the course. As Coin Metrics’ Lucas Nuzzi pointed out last week, hodlers’ unrealized profits haven’t reached the levels seen before previous significant bitcoin falls.

To summarize, historical patterns, recent price action, and on-chain data all point to the latest fall, not signalling the start of a bear market. If we had to point to a market cycle stage, BTC and crypto are still quite likely to be in the “Mania Phase,” where public opinion is long-term bullish.

Bitcoin

When will Bitcoin Rally Start? Technical Analysis:

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When will Bitcoin Rally Start? Technical Analysis:

Bitcoin dropped today after briefly kissing the $59900 and as the selling pressure rose it dropped swiftly and the slump continues. The question is when will the Bitcoin rally start?

When will Bitcoin Rally Start? Technical Analysis:

TradingView Bitcoin Chart

Bitcoin Rally: Technical Analysis

The Bitcoin price today is $54,346.67 USD with a 24-hour trading volume of $42,612,427,726 USD. Bitcoin is down 7.79% in the last 24 hours. The current CoinMarketCap ranking is #1, with market cap of $1,026,280,520,107 USD. It has a circulating supply of 18,883,962 BTC coins and a max. supply of 21,000,000 BTC coins.

Bitcoin has found its support at fib -0.65 and has an increased volatility today. Bitcoin is currently trading below EMA 20 on an hourly chart which indicates that the Bearish trend is volatile. The relative strength indicator shows that Bitcoin has entered an oversold situation. This means that now it should start getting the buyers in and the price should rise to the previous highs of yesterday.

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26 % of the Crypto investors are in NFTs

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26 % of the Crypto investors are in NFTs

The decentralized era of Blockchain assets – Cryptocurrencies and NFTs are revolutionizing the traditional centralized financial systems by rooting out almost all their problems straight away in a single solution. In this digital era, we face the problems of authenticity, origin, and verification of digital files which is not possible without being on blockchain.

Non-fungible tokens (NFTs) address such problems solely and transparently so that the idea could only belong to its origin through proof of ownership.

investors tired NFTs

26 % of the Crypto investors are in NFTs

In Japan there held a survey to check what percentage of people already in cryptocurrency holds NFTs. We will put here stress on the fact that the cryptocurrency traders and investors are the first in the line those who understand the NFTs and their potential profits. The report shows that one out of four people holds NFTs, 26% to be exact.

The survey was conducted by Major Japanese crypto exchange BitBank to estimate the mass adoption of NFTs by the people who completely understand the idea. Out of this 26% of people holding NFTs, 39% revealed that they never sold their NFTs and they are holding these digital assets and they are not aware of the actual value of their NFTs. 22% of these people holding the digital assets were aware of the actual price of what they own.

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Hackers using Google cloud accounts to Mine Cryptocurrency

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Hackers using Google cloud accounts to Mine Cryptocurrency

Google provides 2 giga bytes of free cloud storage to each Google account holder. Users can buy the premium access to more storage up to 100 giga bytes. Google provides two factor authentication to it user for added security. Hackers have found the vulnerabilities and used the Google Cloud accounts to install the third-party software for mining.

Hackers using Google cloud:

Hackers using Google cloud accounts to Mine Cryptocurrency

Due to poor customer security practices the hackers take up the control of their accounts to install the mining software under 30 seconds. This pirated software then uses the resources of computer including CPU, GPU and Storage to server for their mining on Chia Network. According to a report, the percentage of hacking for mining purposes in Google Cloud storage is 86% related to crypto mining and only 14% for other cases. According to cybersecurity the error is not at the end of Google side. The hacks are due to poor customer security practices.

Remember to always use Two factor authentication and not download any pirated software as anything that seems free comes at a greater cost.

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