The first cryptocurrency on the market complicates life while it accumulates investors’ fear of recession, the most immediate at the cost of the increasing rise in global inflation and those derived from the drastic price cut, which is placing a serious situation to the largest Bitcoin fund.
The bad thing is that Bitcoin is once again comfortable in its retraction to $20,000, which it has once again tested strongly last Thursday, although without reaching the low of the year at $17,600. But it is a new warning to navigators, that it has broken supports and that each time, with greater ease, it is going back from those levels, previously considered key, to determine its strength.
It is like moving between worlds as we see in science fiction movies. A back and forth between two very different realities. And that without leaving the Sci-fy genre takes us back to time travel like the Terminator, which comes from the future to save or kill the present, depending on how you look at it.
Also in the case of the impact that the fall of cryptocurrencies in general and of the most accepted and institutional ones such as Bitcoin in particular is producing as collateral damage, which returns to the digital currency in the form of falls. It is what we have seen last Friday with Grayscale. If the fall of Bitcoin and the rest causes layoffs in the exchanges, fewer transactions and other negative drifts in everything that surrounds the sector, we now see as the SEC’s no the largest investment fund that exists on Bitcoin to become an ETF has turned against the listing.
Specifically, Bitcoin cut its evolution by 11% in the last week, with monthly falls of 36.4%, in the semester the decline reaches 59% and, so far this year, the cuts for the price of Bitcoin are 59 .60% for assets.
And it is that, all this has ended with Grayscale’s demand on the regulator of the American markets, which understands that the rejection of the conversion of the fund into an ETF occurs because it puts on the table its concern, because it is about manipulations market and investor protection. A lawsuit that will not be resolved, at least until the end of next year or early 2024.
And its immediate consequence is not only the fall due to the domino effect of Bitcoin, but also having lost its last chance, since it has lost 48% of its value in the last year and its shares are even trading 30% below its Bitcoin, but the SEC does not approve Bitcoin cash ETFs, but has only given the go-ahead to date, to futures. In fact, he has also just given a direct no about one of similar characteristics requested by Bitwise.
At the moment, Bitcoin, in its fear and greed index, is once again cutting positions, without leaving the extreme fear in which it has been in recent months with a level of 11 compared to 14 the previous week. In addition, in terms of capitalization, it ranks 18th among global assets, behind Exxon Mobil and ahead of Nvidia, with clear setbacks. It represents 42% of the total of all the cryptocurrencies that are listed on the market with those 362,125 million that are “worth” on the market.
But fears have also come from Jerome Powell’s last words on inflation. He believes that, be that as it may, inflation must be stopped and if that means recession, then it will have to be accepted. His words were not so clear, but he said that the FED will not allow the economy to fall “into a higher inflation regime” which opens the door, suspecting that prices continue to rise, to an increase perhaps more aggressive of the types that also Bitcoin is trading lower.
Be that as it may, there are those who are entering Bitcoin again and taking advantage of the opportunity to buy at what some consider to be knockdown prices for Bitcoin.
This is the case of Michael Saylor, who has invested, in the last two months, up to 10 million dollars more in Bitcoin, an additional 480 at an average price of 20,817 dollars. He now therefore owns 129,699 Bitcoin averaging $30,664 and in which he has invested a total of $3.98 million.
In the technical indicators that Investment Strategies prepares, we verify that Bitcoin barely maintains a score, in bearish mode of half a point compared to the 10 total score to which the value can aspire. Only long-term volatility moves positively, which is decreasing for the value.
On the other side, the trend is bearish in the long term and also in the medium, likewise, the slow and fast total momentum is negative. In addition, the volume of business in the medium and long term, which is decreasing, while the volatility in the medium term is decreasing.