The total value of the cryptocurrency market has shrunk by 7% in the last day, falling below the very important level of 1 trillion dollars. It currently stands at $996.2 billion. However, experts warn investors that further declines may be imminent.
Will the crypto market continue to decline?
In his analysis, the famous crypto analyst Willy Woo explained the rate of Bitcoins whose cost is above the current price. used. Accordingly, the analyst suggests that the crypto market is close to the bottom, but is not there yet.
However, Woo suggests that the crypto market has not yet experienced much decline compared to previous years. The analyst underlined that the market has reached only 52% of the coins that have been at a loss so far. However, the most recent lows were 61%, 64% and 57%. On the other hand, Woo added that there is no need for history to repeat itself.
“Are we at the bottom?
In terms of maximum pain, we have not yet felt the same pain compared to the previous bottoms. You can see this in the blue line. We have reached the level of 52% in terms of positions that have been in loss so far. Previous lows were 61%, 64% and 57%.
Especially when we consider the conditions of the age, history does not have to repeat itself. Because here there may be much newer types of transactions that are not reflected in on-chain data.
However, if we are still going to have to reach the 60% maximum pain, this price currently points to $9100 and is going up over time.”
Did US inflation data affect the market?
Koinfinans.com As we reported, Bitcoin prices fell by around 10% after the release of the Consumer Price Index data. BTC is trading at an average of $20,249 at press time.
CPI data has not proven to be good for the crypto market. Annual inflation in the USA stands at 8.3%. However, this came in above the expected 8.1%.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.