Cryptocurrency

Bitcoin Up From Mid-August Lows Amid Growing Economic Uncertainty

Bitcoin Up From Mid-August Lows Amid Growing Economic Uncertainty

Bitcoin Up From Mid-August Lows Amid Growing Economic Uncertainty

Bitcoin Up From Mid-August Lows Amid Growing Economic Uncertainty

Most crypto assets breathed heavily throughout the weekend after Friday’s steep price decrease as investors continued to reflect on the most recent inflation statistics and lingering macroeconomic worries.

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The top-performing cryptocurrency on the daily chart was still down almost 13% for the entire week, which was its worst weekly performance since mid-August. Recently, Bitcoin was trading at about $21.5K and was up more than 1% for the day. The biggest cryptocurrency at one point experienced a decline of more than 9% in market value. After an unexpectedly disappointing report on inflation from Germany, the largest economy in Europe by GDP, and new concerns about the pace of interest rate increases in the United States, Friday came.

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Due to market reductions in the US housing industry, investors who were already on edge became even more so. On-chain indicators, however, suggest that Bitcoin’s correction period may be ending.

Bitcoin Up From Mid-August Lows Amid Growing Economic Uncertainty

Based on Glassnode data, since reaching an all-time high in May 2022, the long-term holder’s supply has slightly decreased by -200K BTC, although it has remained essentially range-bound throughout the past 12 months. This shows that the cohort’s inflow/outflow dynamic is generally balanced.

On the other hand, the supply of short-term holders has increased by +330k BTC as a result of a price capitulation.

Since the May collapse of LUNA, there has been a net transfer of -300k BTC from the combined LTHs and exchanges to STHs. Given the concomitant price drops, this essentially represents a capitulation-style occurrence, and the rising short-term holders’ supply refers to the accumulation of buyers who entered during the flush out and now have coins with a significantly lower worth.

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However, other analysts wonder if the current Bitcoin price rebound runs the risk of turning into a false bullish indication given the asset’s past recoveries during earlier poor markets.

BTC’s price rose by over 100% during the 2018 bear market cycle, from about $6K to over $11.5K, before losing all of its gains and falling to about $3K. It should be noted that similar corrections and rebounding also happened in 2019 and 2022.


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I Am a financial analyst, Entrepreneur, Blogger and Business model. With 15 years' Consultancy Experience.

IBEH C. JOE

I Am a financial analyst, Entrepreneur, Blogger and Business model. With 15 years' Consultancy Experience.

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