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Since the very beginning, the year 2022 seems to be targeting cryptocurrencies with particular vengeance. Having experienced the most terrible fall, Terra USD is in dire state. Bitcoin too is facing the heat and has little to write home about. If the predictions are to be taken seriously, the most powerful and popular cryptocurrency is on the verge of a fresh decline in the coming month to incur losses in crypto wallets. It has already dropped below US$30,000, which means a slide down of more than 50 percent. Several factors are being identified for such a state of affairs, mainly the rising rate of interest, spiralling inflation, and of course the Russia-Ukraine war. But there could be something more in the form of the performance of the BTC whales.
One distinctly remembers that in August last year after having gone through a great fall, Bitcoin had bounced back into the market with a tally of US$50,000. The reason for such an impressive performance was the BTC whales. Whales, with large investments with at least 10,000 in each case, individually and collectively constitute the Bitcoin community. What happened then was that the Bitcoin investors began investing back in a reversal of their sell-off act when the price of the cryptocurrency was falling. But the situation seems to be different now. Then the question is are the BTC whales again deciding to leave the crypto for the betterment of crypto wallets.
The signal was found in January this year when one found the whales staying away from the market during the fall of the Bitcoin, thereby registering a lower chance of recovery. There are veteran market observers who point out that the bearish trend this time has all the possibilities of Bitcoin receiving a grievous blow from which recovery would be difficult. Incidentally, even before mid-May Bitcoin has experienced a three-month-low decline. This is not the lowest in the history of the crypto coin but there is definitely a cause for concern. Much depends on the decision and action of the top whales but up until now, they are busy quitting and selling and thereby hastening the market downturn for the once treasured cryptocurrency.
Experience tells us that once the confidence level in a particular currency network starts falling it becomes difficult to make recovery. Right now, Bitcoin is also making a minor recovery and some corrections are being made here and there but that does not raise adequate optimism about the comeback of this popular crypto.
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