Bitcoin, the world’s dominant crypto, plummeted under $20K. That saw BTC losing the highly-respected milestone. The US Fed Reserve’s remarks about inflation triggered a brutal sell-off for Bitcoin. While writing this blog, the currency traded weaker below sub-$19K.
Sentiment Dead Low
The Fear & Greed Index flashed unsurprising extreme fear conditions. Also, the weighted sentiment reacted by recording a low, with BTC’s sentiments staying expectedly negative after the 3-% price drop within the last 30 days.
Social sentiment stayed ‘highly negative’ for the 5th consecutive week. Similar trends emerged from June to July last year when the metric remained ‘extremely negative’ for seven successive weeks. Nevertheless, Santiment believes prices reacted to the latter with a 38% upsurge.
Santiment’s data indicated BTCs price could witness a bottom around the current value area before appreciating in the upcoming weeks. Prices have often surged when sentiment hits low zones.
The Bitcoin Momentum
Moreover, Bitcoin holders have supported the crypto since its launch, regardless of the ups and downs. For example, addresses holding more than 10K BTC witnessed a substantial increase. Also, wallets with over 0.1 tokens hit the 3,586,227 ATH.
Crypto traders appear to clamp down on purchasing more $BTC at discounted prices due to the mentioned cases. Such a narrative has whales or dominant buyers on the move. Large holder inflow observes cash into whales’ addresses. And the metric appears to surge at this publication.
Moreover, large holder netflow recorded the highest inflow since Feb with 116K $BTC. That confirmed a possible bottom in price as these wallets often buy after a significant retracement.
BTC’s hash rate explores its lowest market since Oct 2020. Can that mean a distress signal? Well, the hash rate grows slower this year than expected amidst rising energy costs and falling Bitcoin prices.
BTC’s weekly average hash rate has lost 9% toward 212 EH/s from the June 12 ATH of 234 EH/s. Lower readings mean minor leaving the platform. Therefore, that might worsen the token’s performance plus faded security on BTC’s chain.
Stay tuned for the latest developments in the crypto spectrum.