In the previous 24 hours, the global cryptocurrency market cap has increased by nearly 3% to $961 billion. Bitcoin and other major crypto tokens rallied dramatically on Thursday, with the world’s largest cryptocurrency trading barely over the $22,000 mark. Jerome Powell, the chairman of the US Federal Reserve, announced the highest interest rate hike since 1994.
Bitcoin is currently trading at $21,809, up 2.7% from its previous close, although it is still down 25% on the weekly charts. Bitcoin, according to crypto analyst Rekt Capital, may be entering a multi-month consolidation phase.
“In 2015, BTC bottomed 547 days before the Halving. In 2018, $BTC bottomed 517 days before the Halving (discount March 2020 crash). If Bitcoin is going to bottom 517-547 days before the upcoming April 2024 Halving… Then the bottom will occur in Q4 this year.”
Furthermore, Rekt Capital has another intriguing idea for why the bear market may be months away. Rekt Capital expects the bottom in Q4 2022, based on the link between Bitcoin and the next halving cycle.
The Highest Number of Realized losses
This week has witnessed the highest number of realized losses, causing traders the most loss. As far as on-chain data goes Santiment explains :
“It’s no surprise to see Bitcoin transactions being made in waves of realized losses. And this past week has actually seen the most realized losses since this data was available in 2009.”
Furthermore, the circulation of Bitcoin tokens has reached its greatest level in 4.5 years. Traders are undoubtedly reacting to the significant price decreases this week, according to Santiment, and the 4.5-year high in Bitcoin’s daily token circulation demonstrates how polarized we are. To begin the week, 497k $BTC were traded, the most since December 6, 2017.