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Stocks and both BTC and crypto fell
Bitcoin and the entire crypto market had a time when it fell below $ 40,000 yesterday. Altcoins also fell more sharply.
US stocks also fell sharply, falling the most was the Nasdaq index with a ratio of more than 2.18%. The futures market continues its downtrend. Gold and oil rose slightly.
The market continued to worry before the official announcement date of CPI. Consumers now see inflation hitting 6.6% next year, according to a March New York Fed survey released on Monday. That’s a 10% increase from average expectations over the past month alone, and the highest in a series since 2013. The Biden administration also predicted that inflation in March could be unusually buoyed by the effects of the coronavirus. Russia’s attack on Ukraine caused a sudden increase in energy prices.
The White House predicted high inflation and mainly mentioned the cause of the war. But in fact, high inflation is predictable because the US government’s money printing policy pushes into the huge market when the epidemic occurs. And this prediction was made in order for the American people to focus on the causes of the war, not the management of the government. This will benefit the House and Senate elections in November this year.
Recently, the Nasdaq index and Bitcoin are said to have a very high correlation. In the short term, there will be times of high correlation (positive correlation). This causes BTC and crypto prices to go down as well.
Another reason comes from concerns that the covid epidemic will show signs of increasing again in Shanghai (China). The US State Department has asked all non-emergency government employees and their family members in Shanghai to leave as Covid spikes. At the same time, the US government is asking US citizens to reconsider traveling to China due to the arbitrary enforcement of local laws and covid-19 related restrictions in the country.
A new omicron sub-variant has been detected in the UK as the country faces a fresh rise in the number of Covid-19 hospitalizations. According to the latest statistics from the UK Health Security Agency, the XE variant has so far been detected in 637 patients.
It is what is called “recombinant”, meaning it contains a mixture of the formerly highly infectious omicron strain BA.1, which appeared in late 2021, and the newer variant BA.2, which is currently dominant variant of the UK. Such recombinations are not uncommon, but health authorities say there is currently insufficient evidence to draw conclusions about its transmissibility or severity.
BTC market via on-chain data
The more fearful the market is, the more whales want retail investors to sell BTC causing the price to drop and they collect. Over the past week or so, the Bitcoin Whale Ratio shows more active whales. Especially on April 9, up to 8/10 transactions came from large wallets.
The amount of leverage in the market is also very high. When the price fell, the leveraged orders were liquidated to more than 432 million USD. Mainly liquidation comes from Long orders.
Recently, the number of BTC on exchanges has also increased slightly. It is possible that more BTC is pushed to the exchange to sell, causing the price to drop.
Even so, the MPI shows that miners show no signs of selling. Investors holding BTC for a year or more move BTC very low. Long-term investors show no signs of selling, according to PlanC (PlanB).
The Short Term Hodler Index (SOPR) is moving mostly below 1. Short-term investors can be seen getting nervous and moving BTC (possibly selling) despite losses.
After two consecutive weeks of intensification of money pushing into the crypto market, the past week has shown the opposite. According to Coinshare statistics, last week, there was 134 million USD leaving the crypto market. Outflows are widely distributed across providers in both Europe (39%) and America (61%). In which, the cash flow out of BTC and ETH was USD 131.8 million and USD 15.3 million, respectively. There are some other coins with increased cash flow such as SOL, LTC, DOT,…
Although the amount of money leaving BTC and ETH last week was the highest, in general, the amount of money invested by these funds is still at the top of BTC and ETH, the number of differences in value with other cryptocurrencies is very large.
Some other information:
The US Central Bank (BofA) predicts a terrible recession as the Fed tightens its monetary policy. BofA chief investment strategist Michael Hartnett also said that amid this volatile economy, cash, commodities and cryptocurrencies are likely to come out strong, outperforming bonds and stocks due to their anti-inflationary properties.
The founder of the Luna stablecoin, Do Kwon, purchased over 4,000 Bitcoins over the weekend. This BTC was purchased with a value of nearly 170 million USD. As of April 6, Do Kwon’s Bitcoin address has 35,767 BTC. It has now grown to 39,897 BTC worth $1.6 billion.
Elon Musk’s decision not to join Twitter’s board means he’s no longer limited to owning just 14.9% of the company. Now, many analysts think the Tesla CEO could increase his stake and eventually try to establish control.
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