Glassnode Predicts More Pain Ahead; Here’s Why

In a publication made by Glassnode, a cryptocurrency on-chain analytics platform, the ongoing bearish run in the crypto market is expected to continue, after a further downward movement in price.

Bitcoin faces a two-year low value

Despite beginning the year in a rather humble fashion, trading just below the $30,000 region, the price of Bitcoin soared to an all time high of over $68,000 by the last quarter of last year. The boom resulted in Bitcoin being tipped for unimaginable greatness.

Many key proponents gave their takes on the matter with a few expecting the coin to close 2022 at around $200,000, if not higher. Then came the crypto winter by late November and early December, which had a massive impact on the global crypto market.

The highly valued digital asset suddenly lost much of its value and within a few months, a seeming resistance was found around the $30,000 region. Fresh expectations were born but things have gone worse.

According to available statistics, the ongoing bearish run is almost a reflection of what had happened in 2015 and 2018. Also, investors are naturally expected to react to the ongoing trend with a massive sell-off.

Bitcoin previously bought by over 100 hopeful addresses

The bearish run was most felt in May when millions were lost to the depegging of Luna. Prior to the crash of the stablecoin, Luna Foundation Guard forfeited over 80,000 bitcoins at $33,000 per unit of the coin.

The sell off was a desperate attempt to introduce balance into the failing UST, considering the coins were originally purchased at $47,000. The sales initiated by LFG amounted to $1.5 billion worth of Bitcoin. However, the move didn’t stop the impending damage.

Despite the sell-off, Luna lost its peg to the US dollars and nosedived from a relatively high value of over $119 to just below $0.00001675. In reaction, the prices of two of the world’s crypto frontliners, Bitcoin and Ethereum, made a downward movement too.

In a tweet by Glassnode, all of the bitcoins ‘dumped’ by Luna Foundation Guard were bought by addresses who’d previously held less than 100 bitcoins in their portfolios, moving the 80,081 bitcoins to 80,724. As at press time, Bitcoin trades in the $25,000 zone and Ethereum, $1234.99.