After weeks of bulls struggling to get back to control, bears were strong enough to not let go of the charge as the world’s largest cryptocurrency, Bitcoin failed to even keep up the price above the $40,000 range. Many experts had warned that only if BTC Price manages to withhold the $40,000 level then the price might gain in the near future, otherwise, the value will decline.
As the flagship currency declined, so did the altcoins and as the result, the global market capitalization has dropped by 3.74% over the last 24hrs and has positioned at 1.81 trillion.
All Eyes On The Bitcoin
According to Glassnode, a Blockchain data and intelligence provider’s co-founders, Jan Happel and Yann Allemann warned Bitcoin traders through a newsletter that Bitcoin will see a correction and drop along with a correction in the US stock market.
The co-founders are seen quoting that “Our analysis continues to suggest that this renewed sensitivity to market risks and a higher likelihood of stronger drawdowns has not been due to a lack of confidence in [BTC] but rather due to a charged macroeconomic environment.”
As per the statement, it is likely that Bitcoin will experience another sell-off event.
Moving further, Glassnode’s co-founders say that the macroeconomic environment looks weak after the Federal Reserve made an announcement that its balance sheet will be tuned to $95 billion per month to fight against continued inflation.
On the other hand, the Glass node executives claim that during last week, more than $100 million in funds in Bitcoin have moved out of the crypto markets affecting Bitcoin’s price. This outflow marks the second-highest weekly outflows in 2022.
The one that has caused fear among traders is, according to one of the co-founders, Yann Allemann, Bitcoin investors have been withdrawing Bitcoin from Crypto exchanges at a significant rate and this is pointing toward Bitcoin’s bottom could be near.
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