- We are currently witnessing mixed signals in the crypto markets, with top cryptocurrencies making decent recoveries since last weekend’s fall.
- The recovery seems fragile at the current point, with analysts predicting a market bottom despite a record number of Bitcoins being held at a loss.
Massive Liquidations Rock Crypto Last Week
Crypto markets have seen almost $5.7 billion in liquidations, with most occurring in the last week, and most of the liquidation was in the longs, i.e., bullish traders.
The liquidations seem to have reset the crypto markets, providing an exit to recent crypto buyers and short-term traders. Now, after the liquidations, there has been a sustained bounce back as new investors who were eager to buy enter the markets.
As a result, Bitcoin and other cryptocurrencies have shown a decent recovery in the last 24 hours at press time.
Over 10.5 million Bitcoins are Being Held at a Loss
Data from NewHedge shows that over 10.5 million bitcoins, or half of the crypto market supply, have been held at a loss below market price. If this data is accurate, there is a very high risk of Bitcoin crashing towards $40,000 if a price-sensitive trigger is seen in the market. Since the supply is almost half of Bitcoin’s total supply, the crash is expected to occur very quickly, possibly within a week.
However, traditionally, Bitcoin holders have kept their hands tight despite bad markets.
However, Analysts Say Markets Have Already Hit Bottom
Top investment bank Standard Chartered has said that crypto markets may have already hit a bottom last week.
Another bank, Citi, has also given a bullish outlook for Bitcoin, saying it might reach $189,000 in the next four to six months.
Cathie Wood, the head of one of the leading ETF issuers, Ark Invest, has said that Bitcoin might reach $1.25 million in the next few years. This prediction is a revision of our previous one, in which she said it could reach $750,000 by 2030.
Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.
