The world’s largest cryptocurrency Bitcoin (BTC) has entered a strong correction dropping further to its June 2022 lows. As of press time, Bitcoin is trading 5.7% down at $18,662 with a market cap of $357 billion.
The BTC price drop in the last 24 hours is in sync with the broader market correction as the total crypto market cap drops once again under $1 trillion. The growing uncertainty in global macros is putting additional pressure on risk assets along with cryptocurrencies.
In addition to Bitcoin, altcoins have witnessed a steeper correction with Ethereum (ETH) falling over an 8%. Also, there have been severe liquidations taking place amid the market crash. As crypto journalist Colin Wu writes:
In the past 24 hours, Bitcoin fell by 6%, ETH fell by 8%, and the liquidation amount in 24h was 340 million US dollars. f2pool shows that Bitcoin mining machines such as T17 M21 have fallen below the shutdown price.
Another major factor hinting at bearish sentiment is the total Bitcoin unspent over the last year reaching an all-time high. On-chain data provider Glassnode explains:
The volume of #Bitcoin supply that has remained unspent for at least 1yr, has reached a new ATH of 12.589M $BTC. This is equivalent to 65.77% of the circulating supply. Increasing dormant supply is a characteristic of #Bitcoin bear markets.
As we can see the uncertain global macro conditions have been playing a spoilsport in the recent market volatility. Speaking to Bloomberg, Kevin Loo, head of investment insights at IDEG Asset Management Ltd., said:
“The macro narrative is very hard to be able to let go and will drive risk assets. Bitcoin is below $20,000. We have been here before and it’s likely that we could actually go slightly lower.”
But striking an optimistic note, he added: “Bitcoin was at $3,000 in the first crypto winter and if you measure trough to trough, the trend is we are heading higher in the longer term”.
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