It looks like bears have conquered the cryptocurrency market as the market has been flashing red for a month now. Now as the world’s first cryptocurrency flips below the $32,000 level.
However, when we look at the 200-day moving average, it’s seen that Bitcoin has dipped only 10% since its first halving.
Meanwhile, as the bulls lose control over the broader cryptocurrency market along with that of Bitcoin’s price action, popular Blockchain analysts at Coinshares and Glassnode have observed an interesting twist in investors’ activity.
As per reports last week, investors have used price turbulence to transfer more assets into Bitcoin Ethereum and also into cryptocurrency-based exchange-traded products. On the contrary, unlike retail investors, wealthy investors with large holdings or also known as whales and institutions usually have their protection against the stormy market.
According to CoinShares reports, in the last seven days, the crypto investment products have witnessed a total inflow of $40 million and Bitcoin’s net inflow stands at $45 million.
The Coinshare reports are gained after tracking the exchange-traded crypto products like the Grayscale Bitcoin Trust (GBTC), the one that is invested in Bitcoin and follows BTC price movement.
The head of research at CoinShares, James Butterfill claimed in the reports that it is too early to say if this is the end of the 4-week run towards a negative trend.
Also, there is some guesswork going on around the Bitcoin price action. Investors here use futures, a kind of derivative to see if the asset is set to increase or decrease in price.
According to the analysis made by Glassnode and CoinShares, the Bitcoin network currently has 60% unrealized losses.
Here the Glassnode researchers have stated that “These levels are coincident with profitability seen in the late-2018, and late 2019-20 bear markets. However, it should be noted that both instances were prior to the final capitulation flush out event.”