It's been a challenge for the last six months for Bitcoin (BTC). The world's largest cryptocurrency has fallen more than 70% from its November 2021 all-time high and is currently trading at US$19K. Its market capitalization has also declined, starting the year at US$880 billion and slipping to $S373 billion at the time of writing. The world's largest crypto exchange, Binance, paused Bitcoin withdrawals because of severe network congestion. Their team suggested users use BTC-BNB or BTC-ETH trading pairs to exchange their Bitcoin and withdraw until they fix the problem.
Investors are stressed and worried, with cryptocurrency lender Celsius freezing withdrawals and transfers citing "extreme" market conditions in a move that was quickly followed by Binance. So much for cryptocurrencies taking on the might of the banking system and putting investors in charge of their money. Now they can't get it. The Death Cross forms when the 50-day moving average (MA) of an asset's price falls below the 200-day moving average. It is indicative of recent selling pressure which causes the short-term average price to go lower than the longer-term average price.
Amid ongoing debate whether if or when BTC/USD will go beyond its current macro lows of US$17,600, new figures suggest that the market easily has further to fall. As noted by Filbfilb, co-founder of trading suite DecenTrader, the MVRV-Z score is now in its classic green zone but not yet at the point which has accompanied price bottoms in the past.
MVRV-Z measures how high or low the Bitcoin spot price is relative to what is referred to as its "fair value." It uses market cap and realized price data along with standard deviation to create what has turned out to be one of the most efficient Bitcoin top and bottom prediction tools.
The central banks have renewed their inflation warnings at the Annual Forum of the European Central Bank. The official announcement has made Bitcoin drop its price to 5.5% with a record of a 40% monthly decline. The US Federal Reserve has announced an increase in interest rates. This can curtail inflation in the nearby future while driving the US economy towards a looming recession. The increase can cause a higher price of commodities and this also created a huge impact on the stock market. There is an underlying pressure of selling off Bitcoin holdings in the highly volatile crypto market.
Bitcoin has breached a key threshold of briefly hitting US$19,000 before reaching US$19,457.64 and is still down more than 70% from November 2021. The fall in BTC price has caused a liquidity issue in the community of blockchain tech companies across the world. Some crypto professionals are expecting Bitcoin to hit US$10k in the nearby future to start soaring high efficiently and effectively.
The sharp downtrend of the popular cryptocurrency is created by inflation warnings. Bitcoin dove deep into the crypto bloodbath with a massive struggle to be in the US$19k price range for crypto investors. The rapid slide in the BTC price is showing that the US Federal Reserve is still making good progress in controlling the inflation rate for the future. The most popular cryptocurrency has stepped down by over 38% in June for inflation and other economic conditions.
Bitcoin (BTC) was created in 2009. It was the first currency to run on blockchain technology. Bitcoin (BTC) miners are individuals who use their computing powers to keep the network running and are paid in Bitcoin (BTC), and have a say in the new procedures adapted to the blockchain. These computers mining Bitcoin are spread worldwide and run by different individuals; therefore, it is difficult to hack. Despite Bitcoin being known for its price swings over the years, many believe this cryptocurrency is here to stay.
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