BTC suffered one of the harshest deviations below the 200-day trend in history. At the moment, the Meyer ratio is 0.478, which means that the BTC price is trading at 52.2% compared to the 200-day moving average.
Cryptocurrencies were exposed to the liquidity crisis which is typical of the crypto space, it led to a drastic fall in the price of crypto even before the Fed’s rate hike on Wednesday. Once again, it was caused by the liquidation of large positions owned by Three Arrows Capital, a notorious crypto hedge fund, resulting in the outbreak of contagion across several DeFi platforms. Things were looking bad last Monday, even before the U.S. markets started trading.
Bitcoin entered an oversold zone, where the hash rate begins to go offline, as expected – the low BTC price compared to mining costs will compel miners to suspend bitcoin mining until its price regains its footing.
Over the last week, the flow of miners entering exchanges was at its peak since January, which is a sign that they are seeking to sell the mined BTC. The drop in the price of bitcoin is putting a strain on the profitability of BTC miners, forcing many of them to trade their BTCs as soon as they are mined to cover transaction costs.
Crypto whales, who own more than $1 million worth of BTC, have been selling their bitcoin holdings since May 5, causing BTC prices to plummet from $40,000 to $30,000. The good news is that last week, apparently, asset sales started to decline. It means that the sales pressure from these whales is coming to an end.
Last week, delegates from 44 countries met at a 3-day conference on financial inclusion at Bitcoin Beach in El Salvador to discuss the first-ever crypto. Ostensibly, it turned out that BTC was well received by the people present, including representatives from Paraguay, Ghana, and Egypt. The LUNA collapse didn’t excite all investors, some saw the drop as an opportunity to restock. Among them were crypto-funds.
Over the past week the crypto market was not very auspicious. The BTC price hit a low of $25,500 after Wednesday’s release of better-than-expected data regarding the U.S. consumer price index. Nevertheless, the value of the first-ever crypto began to regain momentum and now Bitcoin is worth $29,645. In our traditional forecast, we will figure out what to anticipate in the coming week.
Over the past week the crypto market was not very auspicious. Amid the collapse of shares of tech companies there was expected a weakening of the cryptocurrency market. Nevertheless, with the fall of shares of tech businesses, BTC managed to hold on at around $37,000. Let’s check out in our traditional BTCUSD exchange rate forecast what awaits us in the forthcoming week.
Things did not work out so well for the crypto market over the past week. Both the Fed’s new monetary policy announcements and Powell’s admission about the failure to tame inflation spurred risky assets to a steep decline. Not only did crypto market collapse, but the U.S. stock market did as well. Let’s check out in our traditional BTCUSD exchange rate forecast what awaits us in the forthcoming week.
The previous week brought another disappointment to cryptocurrency investors as bitcoin failed to break through above $50,000 level and now it is testing major support at around $40,000. It turns out that the bears win after all, the crypto winter awaits us? Let’s break these issues down in our traditional BTCUSD exchange rate forecast.