Bitcoin price showcases 15% fortnightly dip as market remains engulfed by “extreme fear”
BTC's current slide is emanating as a result of short-term profit-taking from investors.
- US inflation levels are currently at their highest since 1981.
- Despite its lackluster performance over the past week, BTC's key fundamentals suggest that a breakout may be on the horizon soon.
- Pantera Capital revealed that it is closing investments for its blockchain fund next month after having raised a whopping US$1.3 billion for the offering.
Bitcoin, the world's largest cryptocurrency by total market capitalisation, has been all over the price charts recently, with the digital asset's value tumbling from a relative high of AUD$61,000 to around AUD$53,000 between 6 and 13 April. As a result, BTC is now showcasing a weekly loss ratio of approximately 12% while trading at a price point of AUD$53,777.
As per analysts, Bitcoin's slide to under the AUD$53,500 (US$40,000) threshold reveals decreasing demand for the asset from newer market entrants, with HODLers continuing to dominate the currency's day-to-day price action. The Crypto Fear and Greed Index – a widely used metric to gauge investor sentiment – has been hovering around the "extreme fear" region, something that pundits believe has been compounded by the US Consumer Price Index (CPI) rising to its highest levels since 1981.
Blockchain data firm Glassnode says that BTC's shaky on-chain statistics have emanated as a result of "modest volume of profit-taking by investors". Researchers also note that the asset had finally broken out from a multi-month consolidation range, which was a good sign for its long-term price action. "The market has seen around 13,300 BTC in profits realised each day since mid-February, which is not extreme but is providing sufficient headwinds to the asset's prices," Glassnode analysts added.
Major surge may be incoming
Despite Bitcoin's shaky price momentum, there are many who believe that the asset will continue to forge a bullish narrative over the coming few weeks. For example, pseudonymous crypto pundit BTCfuel recently posted a chart noting that a "mega pump" was on the cards for Bitcoin, adding:
"When looking at its Relative Strength Index (RSI), the 2022 Bitcoin correction is very similar to the one witnessed in 2021. Strong bullish move [seems] imminent."
At press time, the total market valuation of the digital asset sector stands at AUD$2.57 trillion, down 9% over the last 48 hours. BTC's market dominance index (DI) stands at a solid 41%.
Pantera's blockchain fund to close soon
Pantera Capital, one of the world's foremost crypto hedge funds, is set to shut down its popular blockchain fund sometime next month after the firm revealed that it had well exceeded its capital accrual efforts last month. As things stand, the fund is backed by US$1.3 billion worth of funds that will be invested in a wide array of early-stage tokens, venture equity, Web3 firms and others.
Disclosure: The author owns a range of cryptocurrencies at the time of writing.