The ongoing bear sentiment in the cryptocurrency market is the worst ever, said blockchain analytics firm Glassnode in its latest report. The firm stated that multiple factors have made the month of June and the ongoing year the worst ever on record for the world's largest cryptocurrency, Bitcoin. With Bitcoin under massive selling pressure as a result of macroeconomic factors, June saw the price of the token dip below the $20,000 mark multiple times. Bitcoin's price is down by 55 percent year-to-date.
The firm's report, titled “A Bear of Historic Proportions”, highlights how key indicators like the 200-day moving average (MA), negative deviation from realized price and net realized losses are all showing a historically bearish month for Bitcoin. Bitcoin has currently fallen below half of its 200-day MA.
“In the midst of this, Bitcoin and Ethereum have both traded below their previous cycle ATHs which is a first in history,” read the report.
Glassnode also noted that with the spot price of Bitcoin falling below its realized prices, most traders are having to close their positions at a loss, which then creates further downward movement pressure on the token. “This cascading effect is often “typical of bear markets and market capitulations,” said Glassnode.
The dips in Bitcoin's price exacerbated these conditions, with investors booking historic losses on the days that price dipped below $20,000. “Investors collectively locked in a loss of -$4.234B in a single day, which is a 22.5% increase from the previous record of $3.457B set in mid-2021,” the report added.
“Over $7.325B in $BTC losses have been locked in by investors spending coins that were accumulated at higher prices,” the firm said in a tweet
Rising inflation, the hike in interest rates, volatility in tech stocks and the ongoing Russia-Ukraine conflict have all been considered macroeconomic conditions that have been pushing down the price of Bitcoin and other cryptocurrencies, resulting in the current market capitulation being seen.
RECOMMENDED FOR YOU
POPULAR