While publishing this blog, Bitcoin (BTC) changed hands near $35,806, more than 10% down within the previous 24hr – 48hrs (CoinGecko data). The bellwether crypto has witnessed a challenging moment, traversing its 5th week of pessimistic trading movements.
Stats and More
Glassnode data showed exchange netflow volume stood around 1,492 BTC. Positive netflows mean inflows have exceeded outflows, suggesting surged liquidity within the marketplace. Glassnode added that the total Bitcoin supply over the past five to seven weeks climbed from around 660K on April 1 to near 682K on May 6. A surge in this figure highlights long-term holders are trimming holdings to reduce losses as they expect the market to decline further.
Another Glassnode data pointed out that spent outputs with 3 – 6 months’ lifespan attains a monthly ATH. On May 3, the number stood near 22,691 and climbed to 35,981 at this publication.
While writing these lines, the asset’s MVRV ratio stood around 1.55. Since Bitcoin’s ratio hovers at the bottom boundary of the range between 1 and 3.5, it’s a massive indication that the crypto stayed in a bear market. Moreover, it shows BTC holders sustaining losses. Also, the current MVRV reading serves as a crucial indicator of the capitulation market.
The ‘Bear’ Impact
The crash in Bitcoin hasn’t only affected its status as a secure investment but had countries doubting their ongoing BTC investments. For example, CBAR (Central Bank of Argentina) declared prohibiting all banks in the nation from offering crypto tokens via the monetary system because of its high-risk and volatile nature.
Also, the IMF (International Monetary Fund) revealed worries about crypto legalization in the Central African Republic and El Salvador, citing massive economic challenges and financial stability.
For now, market participant seems worried about Bitcoin’s directional bias. Though the crypto might recover, everything seems to back the downside narrative. Moreover, some analysts trust a capitulation move from the king crypto. Also, long-term holders appear to lose faith in BTC.
BTC’s downtrends dampened sentiment in the overall crypto market space. The global cryptocurrency market cap reflected the bearish mode at this publication, hovering near 1.65 trillion.
Stay tuned for upcoming developments in the crypto marketplace.
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