FTX Considering the dust and smoke after the disaster, in Bitcoin (BTC) The latest decline was expected by most of the market participants. With this, cryptocurrency unit is still struggling to keep up with selling pressure.
analysis company centiment He attributes the reason for the decline to recent events.
Bitcoin (BTC) Sees Below $16,000
For the first time in two years, according to the analytics firm. $15,900 reason for the decline FTX caused by the distrust of centralized stock exchanges that accelerated after the disaster. FUD.
🧘 #Bitcoin dropped below $15.8k for the first time in 2 years, and address activity spiked to its highest level in over 6 months. #FUD due to lack of trust in exchanges historically benefits the patient, as we see $BTC continue moving into self custody. https://t.co/lz5FOkIkRX pic.twitter.com/6PKUA29nDE
— Santiment (@santimentfeed) November 21, 2022
Most investors in the futures markets liquidate their positions to withdraw their remaining funds and grow their portfolios.
Such a large increase in selling pressure at a time when the entire market is experiencing liquidity problems, Bitcoin (BTC) became an excuse to push its price to values not seen in years.
This is also confirmed by the spike in address activity, which is often seen during major stock market breakouts when investors move their holdings from third parties to their own custody accounts.
The reverse of this process usually happens as the market recovers and investors move their funds back to trading platforms to leverage and maximize profits or turn to alternative assets.
From this point of view, the most likely scenario is that the market will continue to stagnate due to lack of liquidity and new entries.
According to data from CoinShares, institutional investors still avoid investing in digital assets. This situation is unlikely to change until flexible monetary policy in the United States prevails and investors stop aversion to additional risk.
*Not investment advice.
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