Bitcoin has fallen roughly 70% from its spike of $68,000, and it may fall even more.
Meanwhile, while many investors predict a Bitcoin bottom, others seem to have exited the market due to the fear of declining prices. Nevertheless, as per the data, the actual situation is not what it appears to be with the persistent market correction mentality. Most market participants have not abandoned the crypto sector and are simply standing by for Bitcoin to decline further.
According to Ki Young Ju, CEO of CryptoQuant, everyone seems to be discussing negative patterns, yet most of them still have not moved out of the crypto industry. In what may come as a surprise to most, the Bitcoin market valuation has dropped 70% from its peak, whereas stablecoins have dropped by just 11%.
In reality, there are up to $25 billion in stablecoins on cryptocurrency exchanges. Further, Ju explained that the stablecoins in crypto exchanges are now worth 50% of the Bitcoin reserve. He also states that there are $25 billion loaded bullets that will ignite the crypto market price towards the north, but the question is ‘When’ not ‘How’.
Bitcoin Falls Below 200 WMA
At the time of publication, Bitcoin is trading at $19,212, with a fall of 3.90% over the last 24hrs. Following the trade above $20,000 for nearly a week, Bitcoin fell underneath the barrier again on Wednesday, June 29th. Moreover, Bitcoin made history by dropping far below the primary indicator for three consecutive weeks in a row this month.
After the Terra network’s unprecedented breakdown in May, numerous governments recommended tighter crypto legislation. Stablecoins will be the focus of regulatory oversight. To avoid Terra-like disasters, the United Kingdom proposed precautions to protect stablecoins from damage.