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Peter Davis

An writer at FOMOdrive

  • Aug 28, 2023
  • 2 min read

Bitcoin (BTC): historical data warns of a collapse

DonAlt has reported that the Bitcoin market has returned to a bearish trend.

Approximately 90% of those who held Bitcoin for a short period of time experienced a loss.

Benjamin Cowen is of the opinion that Bitcoin may still decline.

Santiment expects that the correction to $25,000 should be the final stage of BTC weakening.

According to CoinShares, investments in crypto funds dropped by $55 million last week, restarting the outflow of funds that has been occurring for 4 out of the last 5 weeks. Specifically, investments in bitcoin decreased by $42 million, while investments in Ethereum decreased by $9 million. Additionally, investments in funds that allow for shorting bitcoin decreased by $2 million.

CoinShares suggest that the decline in sentiment was likely caused by recent media reports that the US Securities and Exchange Commission (SEC) is not close to approving a bitcoin ETF.

Last week saw high volatility, with whales being particularly active, despite the market decline not resulting in a decrease in the number of large investors, according to Santiment. It is expected that a correction to $25,000 should be the final leg of BTC's weakening.

Glassnode suggests that, due to the fact that around 90% of short-term bitcoin holders were at a loss, the most probable outcome for future developments is that they will continue to sell their holdings.

DonAlt, a popular YouTube analyst, has declared that the Bitcoin market is once again in a bearish trend. He believes that the news from BlackRock regarding their application for a spot ETF has caused BTC to completely erase all of its gains and it is no longer responding to positive news.

Popular crypto analyst Benjamin Cowen believes that Bitcoin may continue to decline. This follows a pattern seen in previous years, with BTC dropping in the year before a halving and a US presidential election. For example, in 2019, Bitcoin fell by 61%, in 2015 it dropped by 40%, and in 2011 it plummeted by 82.5%.

Experts predict that the next few months will be critical for the BRC-20 token ecosystem, as Dune has reported that Bitcoin Ordinals, the NFT protocol based on BTC, now accounts for 85% of bitcoin transactions.

21Shares and Ark Invest have submitted an application to launch three Bitcoin futures exchange-traded funds (ETFs) under the Empowered Funds label.

In the four months leading up to June, the FBI seized $1.7 million worth of cryptocurrency, the majority of which was taken from the wallets of the Binance crypto exchange.

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