This is according to the generals of Glassnode, which monitors an index known as the realized price, the average purchase price of all Bitcoins in circulation. The cryptocurrency is currently trading at about $ 1,000 below the current $ 23,430 currency, according to the company. Bitcoin was worth about $ 22,150 late Tuesday afternoon in New York. “The current bear market is now entering a phase that aligns with the deeper and darker phases of previous bears,” the generals wrote in a note. “The market, on average, is slightly above its cost base, and even long-term holders are now moving away from the holder base.” Market watchers have been busy figuring out which investor groups are most affected during the current winter of encryption. With Bitcoin hovering around the December 2020 lows, many new entrants are now under water. Meanwhile, UBS generals are monitoring Bitcoin miners – whose companies are under pressure due to high energy costs and capex commitments – for possible indications of capitulation, which could also have an impact on prices. Digital asset investors have been partially intimidated by crypto lender Celsius Network Ltd. stopped trading, exchanges and transfers, although the wider market remains under pressure after rising core inflation last week, which means the Federal Reserve will have to be aggressive in its efforts to reduce rising prices. . Lori Calvasina, head of RBC Markets’ US Equity Strategy, said she would like to see Bitcoin stabilize. “It has become another useful indicator of emotion and risk assets in general,” he said in a podcast. Meanwhile, Glassnode strategy analysts said a change in the net worth of HODLers – the most ardent investors who refuse to sell – could be used to estimate the size of the currency they are accumulating or distributing. This reading suggests that about 15,000 to 20,000 Bitcoins a month pass into the hands of HODLers, a drop of 64 percent since early May, a sign of weakening accumulation. Bitcoin has fallen 30 percent this month. Its three-percent drop on Tuesday marks the eighth consecutive day of losses, with the rate of change over the past three days at 21 percent – the sharpest drop in its history. “Bitcoin is traded like a penny stock,” Brian Nick, Nuveen’s chief investment strategist, said in an interview. “There are many reasons to believe that once it starts to fall fast, it can continue to fall. “If it can move 20 percent in two days, it can move another 20 percent in the next two days.”
