Wednesday, July 24, 2024

Market Watch June 14: Bitcoin plunges to all-time lowest level since Dec 2020.

Hopes for a recovery in the broader crypto market were shattered after Bitcoin plunged to its all-time lowest level since December 2020. The latest slump suggests a deeper bear market that could last for weeks or months.

Analysts pointed out that long-term holders (LTHs) are regarded as savvy Bitcoin accumulators having amassed their coins early in bull trends at cheaper prices or at a lower cost basis. The holders, when selling or spending their BTC, typically sell it at a lower average cost basis than their short-term peers. However, the latest price crash has flipped the script. LTHs are spending their coins on a higher cost basis than short-term holders (STHs). And this has dashed hopes of a quick rebound for Bitcoin. It coincides with deep bear market finales. The previous one lasted between 52-days in 2020 and 514-days in 2014-2015. According to a Glassnode report, it was accompanied by additional drawdowns in the price of -40% to -65%.

LTHs have now realized significant losses. Their conviction to buy the dips has been shaken. Glassnode stated that around 15,000 – 20,000 Bitcoin per month are transitioning into the hands of Bitcoin HODLers. This is a decline by 64% since early May – highlighting a weakening accumulation response. Moreover, analysts believe the current bear market is entering a phase-aligned with the deepest and darkest phases of previous bears.

At the time of writing this article, Bitcoin was down at $21,890. It has lost 15.53% of its value in the last 24-hours, as per data from CoinMarketCap. Ethereum has also dived to new lows of $1,154. Ether is down by 15.72%. The top two cryptocurrencies sudden deep dip sounded an alarm in the crypto market. This could be attributed to the “crypto winter” wherein crypto firms are also laying off employees.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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