Bitcoin (BTC), the world’s largest cryptocurrency, is still under heavy selling pressure and is currently down over 8%, edging closer to $20,000 in value. This week has seen a lot of huge liquidations and sell-offs.
On-chain data provider, Glassnode explains the realized losses of 0.01 percent of the Market Cap every day suffered by short-term holdings (STHs). “While considerable, these STH losses are not as large as major sell-offs in the last 5yrs,” the data provider explains.
Long-term Bitcoin holders, on the other hand, have seen significant losses of 0.007% of the Market Cap per day. “This is nearly as massive as March 2020, and it is the first major LTH capitulation event in the 2021-22 cycle.
While Bitcoin saw a brief relief rally following the Fed’s pronouncement on Wednesday, it was unable to maintain its gains. Bitcoin has had another huge sell-off in the previous 24 hours, with the price hovering around the $20,000 support level.
If Bitcoin loses 20k and #ethereum loses 1k, things might change very fast, be ready,” said popular crypto analyst Lark Davis. A cascade of liquidations can happen if there are a lot of them.
Galaxy Digital CEO Mike Novogratz told Bloomberg that the chances of the United States slipping into recession had increased. The Fed’s ultimate goal is to bring down rising inflation, and it is expected to announce more rate hikes in the next year.
According to Novogratz, there’s little chance that Bitcoin will reverse course until the Fed decides to shift course from its present QT initiatives. Nobody can tell you where the bottom is! But this is unmistakably the start of a multi-month consolidation!