Take a fresh look at your lifestyle.

Bitcoin is unlikely to see another 50% price drop like March

0


This year, without a doubt, has turned out to be the year of Bitcoin. Despite the coronavirus pandemic, no asset class has served as a better hedge against inflation, an ideal safe haven than bitcoin. Furthermore, the flagship cryptocurrency is the highest performing asset in terms of profitability after recovering from the March coronavirus-induced collapse.

One analyst notes that bitcoin is unlikely to incur another devastating recession like the one seen in March, where the cryptocurrency fell roughly 50% in a single day. This is because the whale rate of exchanges has remained remarkably low during bitcoin's parabolic advance, meaning that large investors are not interested in making a profit on their BTC reserves.

Since the whales are not selling their properties, the bullish momentum may be strong enough to drive the price of bitcoin higher.

CryptoQuant CEO: "There will be no massive dumping like March this year in the future"

Ki Young Ju, CEO of crypto data market aggregator CryptoQuant, I observe that bitcoin is unlikely to see another massive dumping event again. He explained that the BTC exchange whale index is currently very low, which is incredibly optimistic.

There is less selling pressure for bitcoin when there are only a handful of whales depositing on exchanges.

The current bull market is very different from 2017

Based on bitcoin addresses with a balance over $ 10, open interest rates on CME futures, open interest on bitcoin options, spot prices of the cryptocurrency in different national currencies such as the Turkish lira and the grayscale BTC , bitcoin is breaking records.

All these metrics serve to show how much the current rally differs from the historical rally of 2017. This is the opinion of CoinMetrics co-founder Nic Carter, who recently published a detailed post on Medium.

He stated:

"In summary, the current market is much more mature, more financialized, more guarded, more orderly, more restricted, less thoughtful, more efficient in terms of capital and more liquid than the market that fueled the previous bull run in 2017."

Carter also published several charts showing "clear improvements" when comparing the current market environment to the bull market of 2017.





Leave A Reply

Your email address will not be published.