by Sana Bukhari
The cryptocurrency market tanks hard because Bitcoin and other digital assets keep slipping in value. Bitcoin recorded its largest price decrease within two years of trading and created market anxiety about enduring negative trends. Main investors are taking their money back from institutional funds indicating they want no part in this market at present.
Bitcoin displayed huge price swings during last week between $94,000 and $80,000 in its trading. The cryptocurrency faced its most severe weekly reduction of $14,000 and became its largest plunge ever recorded. Sentiment in the market has fallen to extreme fear levels across multiple indicators of market sentiment.
Recent Coinglass data reveals investors are rushing to sell their positions since they sparked $649 million in long liquidations during the past day. Experts predict BTC will keep declining towards $75,000 support during this week since U.S. Consumer Price Index (CPI) data release. The Reuters source reveals that rising Consumer Price index levels create greater market uncertainties which push prices down further.
Bitcoin Investors Eye Fed Decision Amid Inflation Concerns
Investor interest in inflation shows true through CME FedWatch Tool results. Nearly all traders (97%) believe the Federal Reserve will keep its interest rates unchanged when the Federal Open Market Committee holds its next meeting. An ongoing reluctance to adjust interest rates makes it harder to recover crypto market value at this time.
Digital asset investment product withdrawals totaled $876 million last week making four straight weeks of capital leaving the crypto market per CoinShares.A total of $756 million left Bitcoin-related investment products because investors sold their BTC holdings. Ethereum (ETH) lost $89 million worth of funds due to money going out. Cardano (ADA) experienced heavy sales with $1.9 million leaving institutional hands.
Among the cryptocurrency market some alternative coins saw investor money coming in despite the negative market conditions. Investors moved their money into Solana with $16 million then segmented further $5 million into XRP and $2 million into Sui. Several investors still follow blockchain projects besides Bitcoin and Ethereum despite their industry struggles.
Bitcoin Market Recovery Possible As Investors Accumulate More Holdings
Evidence shows the market may start recovering from its current negative phase in the coming days. The business MicroStrategy declared plans to create up to $21 billion worth of new Series A shares to buy additional Bitcoins. The market needs this move to regain trust and the price of Bitcoin can increase.
According to Santiment data the Bitcoin wallets with 10 BTC or more have been accumulating since the market downturn and now hold nearly 5,000 additional BTC. A large number of experienced investors are actively purchasing Bitcoin as they see better chances for long-term price growth.
Actual market recovery will come once big institutional investors resume buying while investors overall change from being excessively worried to eager to make profits. The digital asset market tends to rebound when economic factors improve plus institutions believe more strongly in this type of investment. The markets hold back from strong action because market swings stay intense.
#blockchain #crypto, #decentralized, #distributed, #ledger
This news is republished from another source. You can check the original article here
