The worldwide crypto market capitalization is now $1.76 trillion, down 2.43 percent from the previous day. The overall crypto market volume over the last 24 hours has decreased by 3.15 percent to $92.56 billion.
The price of bitcoin is present $38,686.58. According to CoinMarketCap data, the world’s largest cryptocurrency now has a 41.78 percent market share, up 0.12 percent from the previous day.
Bitcoin (BTC) prices may decline by 20% in the coming months, but it hasn’t stopped the world’s wealthiest investors from buying.
According to Glassnode data, the quantity of Bitcoin held by “unique entities” with a balance of at least 1,000 BTC, or “whales,” has grown to its highest levels since September 2021.
Interestingly, despite Bitcoin’s price dropping from $43,000 to about $38,000 in the last week, the number has increased.
Marcus Sotiriou, a digital asset analyst at GlobalBlock in the United Kingdom, viewed the current increase in Bitcoin whale holdings as an optimistic indicator, recalling a similar shift in September 2021 that preceded a BTC price surge to all-time highs of $69,000 in November 2021.
“As whales have a substantial impact on the market, this metric is an important one to take note of,” he said.
More decline ahead for BTC?
Bitcoin’s price dropped from $69,000 in November of last year to almost $40,000 in late April 2022, owing to the Federal Reserve’s decision to raise interest rates rapidly and terminate its quantitative easing program to combat inflation.
Bitcoin’s decline has paralleled comparable declines in the stock market in the United States, with its correlation with the tech-heavy Nasdaq Composite reaching 0.99 in mid-April. An efficiency score of one indicates that the two assets have been moving in lockstep.
Think of this tremendous correlation as a gravitational field dragging on the price of Bitcoin, explains Nick, an analyst at data site Ecoinometrics. He goes on to say, don’t expect Bitcoin to avoid a severe crash if the Fed bombs the stock market into oblivion.
The technical indicators are in agreement with the dismal fundamental indicators. Notably, Bitcoin has been breaking down from a “bear flag” pattern and, as shown in the chart, faces significant price losses in the coming months. The downside goal for the bear flag is below $33,000.
Meanwhile, Brett Sifling, a financial advisor with Gerber Kawasaki Wealth & Investment Management, believes a break below $30,000 could lead to a drop as low as $20,000.