Bitcoin and other altcoins are gradually recovering from the largest sell-off in the entire cryptocurrency market. In general, everything goes according to the script, and something unexpected did not happen. All that bitcoin buyers will grab at now is the 200-day moving average, on which quite a lot depends. We talked in more detail about the scenario of a bear market in our previous reviews. Now we need to figure out what happened yesterday and really bitcoin was “blown away”.
In fact, everything is not as bad as it might seem. The correction suggested itself for a long time, but while young investors panicked and closed their short positions, some manually, some on margin, large institutional investors continued to buy and buy quite a lot. First of all, you need to focus on these indicators, and not on what Elon Musk said there or what additional restrictions China has introduced in relation to the turnover of cryptocurrencies.
By the way, yesterday about 175,000 BTC were withdrawn from various exchanges per day – this is the maximum amount since the markets fell after the start of the pandemic. On the evening of May 19 alone, more than 37,000 coins left the crypto exchanges. This suggests that the market decline, if it has not ended, then at least it will not continue at the observed pace. Several leading cryptocurrency analysts have released reports stating that many investment funds were actively buying bitcoin immediately after the price dropped below $ 35,000. BTC data from public companies also speaks of this:
As of January 03, 2021, the amount of accumulated BTC was at the level of 1,151,618. As of March 03, 2021, the number increased to 1,350,118, and on May 20, 2021, it increased to 1,647,586. What does this mean? Obviously not about the end of bitcoin and that all this is just another scam. While large players enter the market, such corrections are not something that will be observed, they are simply necessary for further bullish impulses with the renewal of historical highs.
During the correction, the exchanges received a record volume of stablecoins – the equivalent of $ 5.28 billion.This suggests that many investors returned to the market and bought cheaper cryptocurrency assets while speculators recorded losses and fled from it.
If you still have any doubts about what to buy now and not sell in any way, then here’s a recent report from Bank of America: Bitcoin’s popularity these days is at such a high level that many managers of large funds. A poll of 194 fund managers with a total AUM of $ 592 billion found that long Bitcoin is the largest deal in the world. Yes, the report was released even before yesterday’s major correction of cryptocurrencies, but as we already know, large players did not throw off their positions, but, on the contrary, increased them.
As follows from the note to the survey, bitcoin trading is currently the busiest and accounts for about 27% of the total volume. Previous “peaks” of maximum volumes were recorded in the technology sector in September 2020 and September 2018, US Treasury bonds in March 2020. It’s worth noting that this isn’t the first time a cryptocurrency has topped such a list.
In conclusion, I would like to tell you that yesterday was not without troubles, except for a sharp drop in the cryptocurrency market, of course. The world’s largest cryptocurrency trading platforms suffered disruptions during the market crash. Binance, the world’s largest cryptocurrency exchange, temporarily disabled Ethereum withdrawals, citing network congestion, while Coinbase Global Inc. reported “intermittent downtime” for its platform, but later released a statement that identified and fixed the issue. Interruptions were also observed on the Kraken breech.
Many users complained that they could not purchase not only large altcoins, but also problems were observed, for example, with Dogecoin, XRP and Shiba Inu Coins.
But in fairness, it should be noted that all exchanges coped with the problems and promptly corrected them, which in the eyes of the community only makes them stronger and causes more trust in them. The leading cryptocurrency platforms did not have problems with the loss of assets or withdrawals, which may not be good news.