Cryptocurrencies are still classified as a risky asset class, which implies a decrease in interest whendeteriorating macroeconomic environment. Rising global inflation, the risks of global energy and food crises are forcing market participants to reassess.
So, at the end of January, whales (wallets over 1 thousand BTC) increased Bitcoin reserves, considering the price of $40 thousand and below as an excellent offer. Now they are back on sale.
Image source: ecoinometrics.substack.com
The price is kept from falling by the activity of smallbuyers with wallets up to 10 BTC: they increase their purchases in the hope of forming a local bottom. However, analyst Willy Wu's calculations show that there is no necessary dip in relative value: "there is still room for another dip."
Image source: twitter.com/woonomic
AcheronInsights editor Christopher Yates shares Willy Wu's concerns and expects Bitcoin to decline to $30,000 amid a deteriorating macro environment and the upcoming tightening of monetary policy by the Fed.
Image Source: Cryptocurrency ExchangeStormGain
However, most market participants continue withbe optimistic about the prospects of the cryptocurrency market. For example, publicly traded mining companies have previously announced an increase in ASIC orders with the goal of more than doubling capacity by the end of the year. The biggest push is expected from Marathon Digital, which plans to increase its hash rate by six times and become the most powerful publicly traded miner in the world.
Image source: research.arcane.no
At the same time, mining companies are in no hurry to implementmined coins, and some of them not only mine, but also buy Bitcoin on the market. Thus, Marathon Digital currently has a reserve of 8,956 BTC, of which the company bought 4,813 BTC in January last year.
Image source: research.arcane.no
Already today, the US Federal Reserve will announce an increase in the keyrates, which may be followed by a new wave of Bitcoin sales. At least the whales are acting out this scenario, counting on a return to purchases at lower prices.
Analytical group StormGain
(platform for trading, exchanging and storing cryptocurrency)
