The cryptocurrency market has seen some major turmoil over the past few days. The market leader Bitcoin rose from $18,000 on September 7 to $22,000 last night (September 13). But since then, BTC has reversed course and is currently trading around the $20,300 mark. Bitcoin prices are down about 10% since the release of the CPI data.
The Bitcoin market did not perform well with the CPI report. The inflation rate was 8.3% on an annual basis. However, it is more than the expected 8.1%. Although the fundamental data is worse than expected.
History does not need to be repeated
Famous cryptocurrency expert Willy Woo said That short-term holders have a lower cost basis than long-term investors during previous lows. He asserts that the cryptocurrency market is almost there but not quite there.
He went on to point out that the same area where 2019 bottomed out was where the cryptocurrency market finally succumbed in 2015. Wu assumed that the cryptocurrency market hadn’t suffered as much as it had in previous years. He emphasized that only 52% of the coins on the market are currently under water. However, the most recent lows were 61%, 64% and 57%.
He said that this time history should not be repeated. Up to this point, On-chain has not been chosen for a future hedge. However, Woo notes that he’s watching for certain signals before the rotation money comes back in. All of the previous bears in the cryptocurrency market have seen supply interruptions in the profit trend line.
In addition, he said, it is important to appreciate the backlog when transferring coins from sellers to enthusiastic buyers. According to the data, the cryptocurrency market has not yet accumulated to the same degree as the previous lows.
At press time, BTC is at $2,090 and the coin is down more than 2 percent. .