On Monday, the majority of cryptocurrencies fell in value. Analysts have been paying close attention to Bitcoin, owing to its recent decline. Given Bitcoin's dominance, the majority of the cryptosystem seems to be following its lead.
As of 21:00 UTC, Bitcoin (BTC) was trading at $44,211. Over the previous 24 hours, the stock has dropped 2.8 percent.
As of 21:00 UTC, Ether (ETH) was trading at $3,376. Over the previous 24 hours, the stock was down 1%.
According to blockchain numbers, the most recent bitcoin price correction dropped the bitcoin market by 35% from its high of $64,000. Panic selling by buyers who entered the market during the bull run fueled this. The drop was triggered by a series of tweets from Elon Musk, in which he did not rule out the possibility that Tesla has sold or will soon sell all of its $1 billion worth of Bitcoin holdings. He later explained, however, that none of them had been sold by Tesla. According to blockchain data analytics company Glassnode, "the bitcoin market is in a historically important correction, and there are clear signs that short-term holders are leading with panic selling."
Musk revealed last Wednesday that Tesla would no longer consider bitcoin as a payment method due to the environmental effects of cryptocurrency mining. On the Coinbase exchange, the price fell as much as 13% that day, or $7000. Meanwhile, a number of Bitcoin accumulation addresses are still growing, as Glassnode reported yesterday that the market correction is being led by new investors who are panic selling at the moment. Simultaneously, the number of non-zero balance addresses is decreasing, indicating that long-term Bitcoin investors are purchasing during this market downturn.
Investor and technical analyst Constantin Kogan stated that "Indicators show that most likely BTC will stay in the range between $42,000 to $47,000." Tellurian Capital's Bonnefous also shared his opinion: "The bitcoin price seems to be driven randomly by the latest anecdotal tweet or rumor. On the other hand, ether is still under-invested and has a stronger outlook and resilience in the shorter term."