Bitcoin keeps crashing. The future looks quite gloomy. The volume of Bitcoin in crypto exchange inflows has reached the three-month high. And the number of Bitcoin whales is down to minimum of 2022 o far. Basically it means whales are dumping Bitcoin.
New data from blockchain intelligence firm Glassnode shows all that and even more.
BTC addresses have traded in more than 1,700 coins — the highest level of inflows since February.
Steady decline of Bitcoin whales together with that data from crypto exchanges point to a simple conclusion.
The bear market has come and is here to stay. But for how long is that Bitcoin crashing going to last?
Why is Bitcoin crashing?
The high exchange inflow volumes suggest that whales are selling Bitcoin as they prepare for a long-term bear market.
If you believe in the outspoken The Bitcoin Fear and Greed Index, then it’s worth mentioning it currently sits at 11, an extreme fear region.
That’s a strange turn of events after a rather bullish 2021. We had $68,000 at some point last autumn. How could Bitcoin be crashing that drastically after that?
Everybody was hoping for the Bitcoin rally to go on. Some analysts were predicting $100,000 by the end of 2022.
Nobody could foresee that war, of course. But even with that in mind many experts still claimed Bitcoin would go higher. Because in times of uncetrainty, BTC would show it is the real asset and the proper way preserve your wealth.
That never happened.
Not only isn’t Bitcoin going up, it is actually dipping. At the time of writing, BTC is changing hands at $32,500. Investors seem to have lost the faith in Bitcoin completely.
Glassnode’s data clearly shows that whales, who have been the driving force behind crypto for a long while, are dumping and crashing Bitcoin in all sorts of ways.
How about that “buy the dip” strategy?
Glassnode’s analysts say that many investors are waiting for the Bitcoin ‘capitulation wick’.
It means basically that Bitcoin is crashing, but not just enough yet.
some investors who are willing to buy the dip (buy some crypto at the lowest price to make more profit when it goes up) are never actually brave enough to decide that, well, this is a perfect moment to buy.
When general anxiety and fear rise to certain point, the vast majority of investors are simply too afraid to start buying. They are waiting for Bitcoin to dip even more. And then, to dip a little bit more. And some more after that.
Experienced traders know exactly that sometimes such a fear leads to terrible plunging, Bitcoin crashing isn’t happening for the first time. And the recovery might take a while.
Though, up until now Bitcoin have always been able to find a way back to the top.
Bitcoin crashing – key takeways
- Whales are crashing Bitcoin, selling out their tokens through exchanges.
- The number of Bitcoin whales has shortened by a great amount recently.
- There is no sign of these conditions to go away in the near future.
Source: Cryptoslate
