The crypto market lost further momentum after the relief rally waned over the weekend. One of the main reasons for this drop is the increased market FUD for the Fed meeting.
As we approach a crucial crossroads, Bitcoin [BTC] once again fell below the $21,500 mark.
A sentimental crisis
The bears were in complete control over the weekend and drove the asset lower. But July 25 saw a major drop as Bitcoin crashed below $22,000. The following day, a similar decline was recorded with Bitcoin dropping below $21,000.
But it reacted positively to the drop and at press time was trading at $21,322. In this regard, analytics firm Glassnode said that,
“The short-term momentum suggests that the recovery will continue, provided that the price realized and the price realized by the long-term holder can hold as a support level. In the long term, the momentum suggests that the worst of Surrender may be past, but a longer recovery time may be required as fundamental repair continues.
There is more here
A recent update from Glassnode claims that the shrimp cohort started accumulating BTC massively. Shrimp (<1 BTC) increased their circulating BTC supply holding from 5.2% to 6%.
This 0.8% jump has occurred since the collapse of LUNA and is equivalent to approximately 156K BTC.
That being said, Mike McGlone, Senior Commodities Analyst at Bloomberg Intelligence remains bullish on Bitcoin.
In his last TweeterMcGlone said Bitcoin could be in line for a reversal in the second half of 2022.
This is a particularly bold statement since Bitcoin has lost a lot of its value since the start of the year. McGlone claimed that Bitcoin has been one of the “fastest horses” in the race since its inception.
Lowest ever recorded #Bitcoins volatility vs Bloomberg #Commodity Index (BCOM) may portend a recovery in the crypto’s propensity to outperform. Our chart showing Bitcoin’s elongated upward price trajectory against BCOM is typical against most assets. pic.twitter.com/vufd4qouVj
—Mike McGlone (@mikemcglone11) July 25, 2022
Now, as we approach a crucial Fed decision, the crypto market continues to shed gains. Losses reached $50 billion on July 26.
This puts the market at risk as it has plunged below the $1 trillion mark in market capitalization.
A figurehead in the crypto market, Bitcoin itself struggles to maintain its guard. The $21,000 support also looks stable but remains dark with an eye to the recent past.