Despite the slight revival of the cryptocurrency market, skepticism among major players remains. In an attempt tocatch the bottom institutional investors (companieswith investments of $1 million or more) rushed to the stock market - over the past three days the S&P500 has recovered by 7%. Bitcoin continues to hover around $30 thousand, and the number of whales is declining.
Image Source: Cryptocurrency ExchangeStormGain
The recovery in the US stock market is associated with the opinionof the largest analytical agencies about reaching the peak of inflation and softer subsequent steps on the part of the Fed in terms of conducting monetary policy. It is known that after inflation reached the ceiling, in most cases, the market grew. The exception was: December 1969, January 2001. and July 2008
However, large investors do not believe that Bitcoin,just like the stock market, hit bottom. The largest sale was recorded by the whales (from 1 thousand BTC), and their total number has decreased to the level of mid-2020.
Image Source:glassnode.com
Due to the fall of the cryptocurrency, mining has become lessprofitable enterprise. For the first time in the last 10 months, there has been a 4.3% difficulty adjustment as miners shut down equipment that has lost profitability. For the same reason, a number of large players may reconsider their plans to increase production capacity, as the decline in Bitcoin at a high level of complexity pushes back payback periods.
Image Source:btc.com
Small players keep Bitcoin from further falling, while the indicator of fear and greed is at its minimum levels.
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This is a good area to buy if you push off.only from this metric. Apparently, speculators and small investors think the same, demonstrating a revival in margin trading. According to OKX, the margin lending ratio is now 20 points, indicating moderately bullish sentiment.
Analytical group StormGain
(platform for trading, exchanging and storing cryptocurrency)
