The global crypto market capitalization is now $1.76 trillion, down 2.43% from the previous day. The overall crypto market volume in the past 24 hours decreased by 3.15% to $92.56 billion.
Bitcoin price is present at $38,686.58. According to data from CoinMarketCap, the world’s largest cryptocurrency now holds a market share of 41.78%, up 0.12% from the previous day.
Bitcoin (BTC) prices could drop 20% in the coming months, but that hasn’t stopped the world’s wealthiest investors from buying.
According to data from Glassnode, the amount of Bitcoin held by “single entities” with a balance of at least 1,000 BTC, or “whales,” has risen to its highest level since September 2021.
Interestingly, despite Bitcoin’s price dropping from $43,000 to around $38,000 last week, the number has been rising.
Marcus Sotiriou, digital asset analyst at UK’s GlobalBlock, viewed the current surge in Bitcoin whale holdings as a bullish indicator, recalling a similar shift in September 2021 that preceded a surge in BTC prices to all-time highs. of $69,000 in November 2021. .
“As whales have a substantial impact on the market, this metric is important to consider,” he said.
Also read: How will Crypto-Market react to the upcoming FOMC meeting to be held on May 3-4?
More Decline Ahead for BTC?
Bitcoin’s price rose from $69,000 in November last year to nearly $40,000 at the end of April 2022, due to the Federal Reserve’s decision to rapidly raise interest rates and end trading. its quantitative easing program to fight inflation.
Bitcoin’s decline paralleled comparable declines in the US stock market, with its correlation to the tech-heavy Nasdaq Composite hitting 0.99 in mid-April. An efficiency score of one indicates that the two assets evolve in parallel.
Think of this tremendous correlation as a gravitational field that weighs on the price of Bitcoin, says Nick, an analyst at data site Ecoinometrics. He goes on to say, don’t expect Bitcoin to avoid a severe crash if the Fed bombs the stock market into oblivion.
The technical indicators are in agreement with the dismal fundamental indicators. Notably, Bitcoin is breaking out of a “bearish flag” pattern and, as the chart shows, faces significant price losses in the coming months. The downside target for the bear flag is below $33,000.
Meanwhile, Brett Sifling, financial adviser at Gerber Kawasaki Wealth & Investment Management, believes that a break below $30,000 could result in a drop as low as $20,000.