Bitcoin (BTC) got stuck around $23,900 yesterday, although the price briefly touched $24,000 on a number of exchanges. Then bitcoin started falling again and fell back to that infamous support around $23,400 last night.
From there, bitcoin made a small bounce, but didn’t go above $23,700 last night and then dropped quickly again. At the time of writing, the price is once again trying to get a grip on the $23,400 and comes in at $23,450 on Binance and $22,040 on Bitvavo.
This puts the bitcoin price down 1.7% today. The trading volume fell by 7% in the past 24 hours. The total market capitalization is $453 billion and the dominance is 42.3%. The Fear & Greed Index comes out at 51 (Neutral).
Bitcoin Fear and Greed Index is 51 – Neutral
Current price: $23,644 pic.twitter.com/b2sFAKSRNw— Bitcoin Fear and Greed Index (@BitcoinFear) March 2, 2023
Macro is starting to look unfavorable for bitcoin
The macroeconomic situation is slowly starting to look worse again, especially for risky assets such as bitcoin. Inflation figures are higher than expected, leading the Federal Reserve to hint at heavier interest rate hikes yesterday.
Meanwhile, US stock markets also closed in the red yesterday and the US 2-year is rising treasury yieldor bond yield, to the highest point since 2007.
⚠️BREAKING:
*US 2-YEAR TREASURY YIELD HITS 4.93%, HIGHEST SINCE JUNE 2007
🇺🇸 🇺🇸 pic.twitter.com/2JNkkEMMHm
— Investing.com (@Investingcom) March 2, 2023
In addition, liquidity for bitcoin is declining sharply and is now as low as during the fall of Terra (LUNA), reports analysis company Kaiko.
🚨 Liquidity is worsening for crypto’s flagship assets
Market depth in native units is now the lowest it has been since the Terra collapse, after dropping over 50% since October for both $BTC and $ETH pic.twitter.com/lB2yjGdv0r
— Kaiko (@KaikoData) March 1, 2023
Still a lot of confidence among BTC HODLers
Despite all the uncertainty about the macroeconomic situation, there is still a lot of confidence among a large group of investors. A record 67% of bitcoin’s supply has not moved in more than a year, Reflexivity Research reports
A record 67% of Bitcoin’s supply hasn’t moved in at least a year despite macroeconomic uncertainty pic.twitter.com/K3Yum5zPfY
— Reflexivity Research (@ReflexivityRes) March 1, 2023
Bitcoin whales and miners provide selling pressure
Analytics company Santiment reports that the number of bitcoin whales, investors holding large amounts of BTC, continues to decline. That could be a good sign and suggest more decentralization. However, the price just shot up when the number of whales was at its highest.
🐳📉 The amount of existing whale #Bitcoin addresses are continuing to sink, with 2,011 existing compared to 2,266 that existed one year ago today. 2,489 was the #AllTimeHigh set on February 8th, where prices jumped +70% in the following 10 weeks. https://t.co/wzHKjooCkN pic.twitter.com/hWS8wHNctp
— Santiment (@santimentfeed) March 1, 2023
In addition, Cryptoquant analyst Abram Chart reports that whales are currently active on spot exchanges. This usually happens when there is a large inflow of BTC to exchanges and can lead to even more selling pressure.
High activity of whales in spot exchanges
“This behavior can lead to selling pressure.”
by @abramchartLink👇https://t.co/DPFjL3YQH3 pic.twitter.com/pJvXb0UBsI
— CryptoQuant.com (@cryptoquant_com) March 2, 2023
In contrast, analytics firm Glassnode reports that smaller investors, the shrimps and crabsrather accumulating BTC.
We can model the annual balance change of #Bitcoin wallet cohorts, and compare to volumes of $BTC mined over the last year.
Both Shrimps (< 1 BTC) and Crabs (1-10 BTC) are at ATH accumulation rates by this metric.
– 🦐 +105% of mined coins
– 🦀 +119% of mined coins pic.twitter.com/W249Sp6Dt6— glassnode (@glassnode) March 2, 2023
However, it seems that bitcoin miners have started selling their stocks again, analyst Ali Martinez reports:
#Bitcoin miner reserves dropped by 3,835 $BTC over the past week, worth ~$88,200,000. pic.twitter.com/4IPXwxr5Dk
— Ali (@ali_charts) March 1, 2023
Our analysts use Bybit
The crypto market is volatile and constantly changing. Often after every increase, a decrease follows. Our analysts therefore use Bybit to also benefit from falling prices. By using Bybit you have the option to trade in derivatives and place so-called short orders when you expect a price to fall. Very handy! You can easily create an account via this link and registers Bybit that you are from Crypto Insiders. With this you support our platform and you are eligible for great prizes and offers.
Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts’ own insights and experiences.
