The cryptocurrency market tumble has just halted for a while as the major tokens register some recovery. The market crash has left the largest cryptocurrency, Bitcoin (BTC) to fall by 50% from its all time high (ATH). However, the BTC managed to surge by 9% in the last 24 hours.
BTC still holding fort
Bitcoin is trading at an average price of $30,325. Its prices have dropped by 25% in the last 30 days. BTC’s total market capitalization has shrunk to $577.3 Billion. Meanwhile, Bitcoin has seen the liquidation of over $140 million in the last 24 hours.
However, Lark Davis, a crypto analyst, suggested that 2 years of Bitcoin might be approaching. He mentioned that if BTC’s 4 year cycle keeps repeating itself then the market might be looking for the new ATH in 2024.
As per Glassnode, Bitcoins prices are trading lower because the bulls are still under serious pressure to form a price support level. This happened as the network profitability decline continues. However, this fall has been less stressful compared to other BTC bear markets.
This BTC crash still not the worst
The July 2021 market crash led to a BTC price crash of down 54.2% from record highs. Comparatively, 2015, 2018 and March 2020 bear markets dragged the BTC price to 77.2% and 85.5% off the ATH. Meanwhile, the profitability decline is not that much the Bitcoin has seen in the last 3 years. July and December of 2021 which saw a decline in profitability of -18.1% to -19.1%.
Bitcoin’s relative unrealized loss just reached 2 year high. Meanwhile, the relative unrealized profit managed to breach a 19 month low. The Glassnode reported that, BTC’s yesterday crackdown towards the $25,400 price mark. The realized price of $23,960 was last visited in March 2020 last time.
However, as the crypto market is maturing more and more institutional capital is entering the space. Thus Bitcoin has become highly correlated with major economic conditions. This also suggests that way ahead might be a little shacky.