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  • Can Bitcoin fall to 20k low by year end?

    In recent discussions surrounding Bitcoin (BTC) and its potential future price trajectory, crypto-enthusiasts and analysts alike are finding new correlations to dissect. Will Bitcoin reduce to the low of $20k before the year runs out?

    Some crypto enthusiasts are drawing attention to the widely acknowledged inverse correlation between Bitcoin and the DXY (US Dollar Index).

    An expert notes, “Most are aware of the strong historic BTC-DXY inverse correlation. DXY is a USD index against a basket of currencies which has a EURUSD weighting of around 58%. So the BTC-EURUSD correlation should also be relatively high.”

    Some experts believe that there’s a something about the BTC-EURUSD correlation in the period following the pandemic and the last Bitcoin halving. Can we say that the “post-pandemic (post-halving) EURUSD pair has led BTC in both the bullish and bearish direction by anywhere from a month to a full year?”

    This pattern, if it continues to persist, might spell some bearish tendencies for Bitcoin. Probably, if this relationship continues to hold, BTC should break down towards the BTFP low of $20k.

    This statement is a significant one, indicating a potential substantial drop from its current position, all based on the movement patterns of the EURUSD.

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  • If you’ve held Bitcoin for five years, you’re now sitting on a negative return

    Bitcoin notable quotes 2023

    The European Central Bank says bitcoin is on ‘road to irrelevance’ amid crypto collapse – “Since bitcoin appears to be neither suitable as a payment system nor as a form of investment, it should be treated as neither in regulatory terms and thus should not be legitimized.”

    Bitcoin mining is just as bad for the environment as drilling for oil. Each coin mined in 2021 caused $11,314 of climate damage, adding to the total global damages that exceeded $12 billion between 2016 and 2021.

    adminAiden

  • plummet of Bitcoin to $26.1k was a massive liquidation event

    The recent plummet of Bitcoin to $26.1k was a massive liquidation event, underlined by significant changes in the cryptocurrency’s perpetual funding rate and open interest.

    The perpetual funding rate, a mechanism used by exchanges for perpetual futures contracts, which usually sees long positions periodically pay short positions when positive, has shifted into the negative terrain.

    This change implies a reversal of roles where short positions periodically pay long positions, a clear indicator of market anxiety.

    Simultaneously, we witnessed a significant drop in open interest, a measure of the total number of outstanding derivative contracts, such as futures that have not been settled.

    There was a striking obliteration of $1B worth of liquidations, resulting in a massive reset. Specifically, around 60,000 Bitcoin open interest contracts were wiped out in the process, a significant percentage of which were associated with leading exchanges like Binance, Bybit, and OKX.

    Source

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