Wednesday, October 4, 2023

Traders Remain Optimistic as Bitcoin Plummets


On Wednesday, the value of BTC plummets to a new 52-week low of $20,800. Even if the market recovers above $21,000, there are still signals that the bears remain in charge of the market.

On Monday, the number of Bitcoin miners transferring funds to various exchanges surpasses a seven-month high of 9,476. It indicates that they are selling their stock in expectation of a price reduction.

Bitcoin miners’ operations are frequently because of the market opinion. To prevent losing money, they usually sell their possessions. The decline in mining profitability increases the number of miners selling.

Mining revenue decreases by 75% ever since the peak level. Bitcoin, however, falls to roughly $0.0950 per thousand hashes, the weakest level in more than a year. The percentage of miners sending funds to exchanges increases as well. It is a good indicator that miners are under pressure to sell. This action implies that they are bearish on the price and are attempting to trade.

Several mining machines are becoming uncompetitive since the price of Bitcoin falls below $21,000. If the value will not rebound, these enterprises then need to shut their doors. Many other currencies are following Bitcoin’s pricing movement.

Bitcoin did experience a series of bull markets over the last decade. Throughout these phases, Bitcoin’s value plummets by 80–90% of its high. However, it rarely falls below its all-time low. It is presently trading near its 2017 high of over $20,000. If the value of Bitcoin proceeds to plummet, it may return to 2017 levels.

Bitcoin Investors Remain Optimistic

As per TradingView statistics, the value of Bitcoin/USD increased after hitting a high of $20,079 on Bitstamp. It subsequently comes to a halt and reaches $21,700 in the U.S. The S&P 500 gains 1.4% and the Nasdaq Composite Index gains 1.6% as the US equity market begins higher.

The Federal Reserve’s newfound resilience was due to the plurality of analysts factoring in a price rise at Wednesday’s conference. As per Mike McGlone, a materials analyst at Bloomberg, cryptocurrency profitability takes the worst damage in the inflationary climate. While Bitcoin and altcoins continue to plummet in value, commodity prices such as oil increase.

According to him, the enormous spike in crude oil costs over the last several weeks is a strong indicator that inflation is growing. Thus, the Fed is likely to hike interest rates shortly. He also states that the central bank’s price rise trajectory might result in a major drop in customer morale.

30% Desire to HODL

As per a poll done by the Bank of America, 30% of respondents own cryptocurrency. They are claiming that they do not intend to sell their holdings this year. Rather, they are holding out for a lower price. Despite the negative sentiment around cryptocurrencies, some investors remain hopeful that the market will rebound. Despite the lack of a definite end to the pattern, they continue to hope for a turnaround.

According to BoA, the attitude around cryptocurrencies is optimistic, indicating that the business still has potential. However, urges investors to remain careful in light of the recent FUD.

Almost half of those who currently use digital assets claim they buy products online. They argue that purchasing digital assets is a method of paying for goods and services rather than a means of storing wealth.

Mary Santos
Mary Santos
Mary Santos has a degree in economics and after a successful career as an investment analyst, she found an interest in Cryptocurrency. Mary enjoys finding the latest scoop on crypto news.

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