Bitcoin has fallen by more than 30% for 8 consecutive trading days: the “fear and greed” index has dropped to 8

Bitcoin has fallen by more than 30% for 8 consecutive trading days

The bitcoin index has continued to fall for days. On June 13, the Bitcoin index fell as much as 15.63%. As of press time, the Bitcoin index was at $21,401.7, down 3%.

It is worth noting that the Bitcoin index closed down for 8 consecutive trading days, down more than 30%.
In addition to Bitcoin, Ethereum has fallen by more than 37% in the past 7 days, and some small currencies are close to zero.

Bitcoin ‘fear and greed’ index has dropped to 8, which means ” extreme fear”.

Under extreme conditions, the crypto lending platform Celsius Network announced on its social networking site that it would suspend all withdrawals, transactions and transfers. Hours later, Binance announced a suspension of bitcoin withdrawals. After that, the bitcoin interest-bearing products of the German financial technology company Nuri have also suspended withdrawals.

Meanwhile, the Bitcoin “Fear and Greed” index has dropped to 8, extreme fear.
The Bitcoin bear market has entered its “deepest, darkest” phase, and even long-term holders who are still holding on to their teeth are under enormous pressure.

This is the view of Glassnode strategists. The company tracks a metric called “realized price,” or the average purchase price of all bitcoins in the market, currently at $23,430. On Tuesday afternoon, bitcoin was trading around $22,500.

“The current bear market is entering a phase consistent with the deepest and darkest phases of previous bear markets,” the strategists wrote in a note. “On average, the market has lost money and even long-term holders are pulling out.”

Meanwhile, strategists at Glassnode say changes in the net position of HODLers (the most committed investors who refuse to sell) can be used to estimate the amount of bitcoin they are accumulating or distributing. This figure suggests that roughly 15,000-20,000 bitcoins are being handed over to HODLers each month, down 64% since the beginning of May, indicating a waning accumulation.

According to institutional analyst Joanna Ossinger, it looks like the state of cryptocurrencies is bad right now. For a coin already struggling with Fed rate hikes and a sell-off in risk assets, the fiery U.S. inflation data only added to the woes. Bitcoin has been on a losing streak and has broken out of its most recent range. This makes it possible for Bitcoin to test the 200-week moving average, which is around $22,300, or even the 2017 high of $19,511.

Vijay Ayyar, vice president of corporate development and international at cryptocurrency trading platform Luno, said the bearish sentiment could continue into this week, with bitcoin typically falling more than 80 percent and altcoins more than 90 percent if you look back at previous bear markets. If the situation continues, Bitcoin prices will be much lower in the next month or two.

Institutional investors may face huge losses

And MicroStrategy (MSTR.US, stock price $156.87, market value $1.772 billion), the world’s largest listed company holding bitcoin, suffered even worse book losses, and the industry is expected to have reached about $1 billion. Public data shows that in the past two years, MicroStrategy has accumulated nearly 130,000 bitcoins, spending a total of 3.97 billion US dollars. According to the company’s latest quarterly filing with the U.S. SEC, the company’s average purchase price for bitcoin has risen steadily since 2020, to $30,700 per coin as of March 31. Microstrategy founder and CEO Michael Saylor is a big friend of Bitcoin. In the middle of last month, he said that Bitcoin “will reach millions of dollars”. He still said “In Bitcoin We Trust” on the social platform Twitter on June 12, while Bitcoin alone has fallen nearly 50% this quarter.

In addition, on June 13, Alejandro Zelaya, the Finance Minister of the small Central American country of El Salvador, publicly denied the claim that the sharp drop in the price of Bitcoin poses a threat to the financial situation of the Central American country. The government of El Salvador has become the first country to recognize bitcoin as legal tender since last September, despite criticism from the International Monetary Fund, and has also purchased a total of 2,301 bitcoins in batches.

“The only thing I can do is keep smiling when they tell me that El Salvador is at high financial risk because of Bitcoin (falling). In fact, our estimate of $40 million in damages is less than our national budget. 0.5%, the impact on the country’s finances is really small.” Alejandro Zelaya has publicly stated. But since bitcoin became El Salvador’s legal tender, the cryptocurrency’s price has dropped 50 percent
.

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