Bitcoin began to fall and fell sharply following the publication of the Fed’s meeting early Thursday morning, falling below $ 45,000, the lowest level since the light hit in December.
Since then, the decline has deepened and, at the time of publication, Bitcoin has fallen below $ 43,000 a coin, down more than 6% on the day.
Stéphane Ouelette, CEO and co-founder of the cryptocurrency platform FRNT Financial Inc., said:
“The Government-Promote Conference is Eagles. Insurance, and poor investors are often assumed that the beauty assession.”
However, the situation for Bitcoin could be worse than it looks. The weakness of the packaging industry, the collapse of future interests and the number of permanent establishments are all affected.
These data indicate that the “animal spirits” of Bitcoin traders are weak. Even after a 33% drop, cheap brokers, one of the proponents of the cryptocurrency market, have not budged. At the same time, new investors have yet to fill the void after millions of dollars in lucrative jobs were written off in a crash last month.
Jim Greco, director of crypto trading firm Radkl, said:
“Prior to May and November of last year there was a lot of physical activity. Maybe a lot of it was phased out and need to be replaced with new capital.”
Interest in investing in Bitcoin is waning and trading is slow. According to Kaiko data compiled by Messari, the exchange rate was only $ 4.8 billion on Tuesday after several months of decline. This is down from $ 13.1 billion the previous year and the annual average of $ 9.2 billion.
On December 4 of last year, the value of Bitcoin fell by more than 20% per minute, and since then, the volume of Bitcoin has not exceeded the value of $ 10 billion. According to data from Coinglass.com, investors liquidated around $ 2.4 billion in short-term and long-term crypto exposures during the fall.
FalconX Agency Advertising Director Aya Kantorovich said:
“I’ve seen money in the US, hedge funds, etc., initially redistribute venture capital at the end of each year, but this year has seen lower volume compared to when ‘The problem is that we must always prevent or take risks. “
The situation in the future market is similar. After hitting an all-time high of $ 17.4 billion at the end of October last year, open interest in Bitcoin futures on the Chicago Mercantile Exchange fell 39% to around $ 10.6 billion currently.
The market craze was caused by the announcement of the first US Bitcoin futures ETF in mid-October last year, making it one of the funds with one of the highest commodity prices. high never recorded. However, the interest quickly wore off, and after rising by over $ 1 billion in just two days, the ProShares Bitcoin Strategy ETF has only $ 1.2 billion in assets under management left.
In the case of Bitcoin’s slow pace, growth in active address (a measure of market activity) has also stagnated. According to Coinmetrics data collected by Messari, the number is now around 971,000, up from 1.2 million a year ago.
Kantorovich believes this could be the basis for a similar product in the short term, which could lead to a slowdown like in December. he says:
“A residence can mean a lot of assets stored in a ‘cold store.’ The less bitcoin you can trade, the more you can expect to trade based on income.” I think we’ll see some quick and short flash crashes. , similar to what we have seen. in December, we will be opening jobs in the market very soon. “??