An impending downtrend occurred in the Bitcoin network aAfter breaking the record in mid-April, it hit highs of $ 64.8,000.
This drop in prices was partly staged by Elon Musk tweets about Bitcoin’s impact on the environment as well as China’s ongoing crackdown on crypto mining.
As a result, the average bitcoin trader has been on the receiving end as their returns have plummeted to a 14-month low, as announced by Santiment. The provider of on-chain metrics explained:
“Bitcoin may still have increased significantly compared to 2020 prices, but through all the FOMO, top buying and bottom selling values, the BTC network has achieved the lowest average trader returns in 14 months. Historically, this is an above-average place to buy. “
Santiment attributed the loss observed by BTC traders to FOMO (fear of missing out), bottom selling, and top buying. This was the opposite of profitable traders as they usually buy the low and sell the high.
The institutional appetite is drying up
according to to data science company IntoTheBlock:
“On-chain data shows a lack of institutional appetite. Bitcoin has seen a dramatic slowdown in on-chain activity as the total value traded in USD over $ 100,000 is down 61.7% from recent highs in February this year. “
On the other hand, the blockade in the BTC network is caused by long and short term owners, like William Clemente III. The on-chain analyst noticed:
“In the past 30 days, long-term holders have added 579,940 BTC to their holdings, while short-term holders have reduced their holdings by 521,983 BTC.”
Hence, indicators showing that long-term BTC holders are buying while their short-term counterparts are selling.
Meanwhile, some crypto experts believe that bitcoin mining could become more accessible and lucrative due to China’s restrictions.
They found that BTC miners who remain active following China’s move will be more profitable because once miners move away from the Bitcoin network, fewer computational estimates are required per second to find the math solution.
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