Crypto Market Crash Coming

Is Another Crypto Market Crash Coming? Data Insights

  • Crypto market had a decrease on the 10th of September 2024 mainly caused by the US Consumer Price Index (CPI).
  • Similarly, Bitcoin miners were also selling the Bitcoin valued at $1.71 billion in the last 72 hours.
  • Other on-chain indicators like Bitcoin Long/Short and future markets was bearish too, with 53.14% of bitcoin traders are short sellers and 46.86% in long positions.

This article will explore the latest market of movement, the causes and if there is a possibility of another cryptocurrency crash.

Crypto Market Current Drop

Bitcoin, Ethereum, Solana, Ethereum, and Dogecoin all fell significantly in value within the few hours following the release of the CPI. Here are the percentages for each:

Bitcoin (BTC): 1.95% decline
Ethereum (ETH): 1.85% decline
Solana (SOL): 2.10% decline
Dogecoin (DOGE): 2.35% decline

While a CPI drop to 2.5% may seem quite positive in the battle against inflation (down from the prior month’s 3.0%), but investors are far from happy. A less intensive inflation forecast should, in theory, support markets’ stability, yet, as it is inferred from the material, the reality is portrayed quite differently.

What has led to this decline of the price?

Miners and Short Term Holders of Bitcoin Are Selling

The overall selling by the short-term Bitcoin holders and miners is also attributed to be one of the significant factors for this decline. A well-known crypto trader observed that short-term Bitcoin holders sold BTC at a higher price on September 10, shifting around 14,816 BTC, which is estimated to be worth about $850 million. At the same time, Bitcoin miners started dumping 30,000 BTC valued $1.71 billion, in the last 72 hours alone. These large sell-offs have a profound effect in the market as evidenced by the high volatility recorded in their probability density. When these short-term holders decide to sell with the intention of realizing their gains, this results in a selling event that puts negative pressure on Bitcoin and any other crypto.

Bearish On-Chain Metrics

The bearish outlook of the market is also supported by on-chain metric. For instance, data from Coinglass such as the Bitcoin Long/Short are a perfect example and currently at 0.881, which shows that the bearish sentiment is dominant since the index is below 1 (having more short positions than the long positions). Also, the future markets have also declined by 1.5% which is further reducing in this line.

Is Another Crypto Market Crash Coming? Data Insights

With 53.14% of bitcoin traders are short sellers and 46.86% are in long positions indicating an overwhelmingly bearish market wherein investors are expecting the prices to drop further.

Does the crypto market seem destined for a crash?

The million-dollar question remains: should the crypto market expect another crash? Based on current data, there are a few factors to consider:

Market Sentiment: Looking at such on-chain indicators as bearish sentiment, one may observe that the market may go down even lower.

CPI Impact: Even though inflation slowing down should normally lead to stabilizing of markets, by the reactions of investors one can observe certain apprehensions towards future state of economy.

Historical Patterns: Based on Bitcoin’s historical movement patterns, one can predict that if Bitcoin ends below $56,000, then the following level of support, or even the lower one, would be $54,000.

It is, therefore, important to embrace the fact that the market is somewhat weak but at the same time remember that the processing of cryptocurrencies is unpredictable and could shift at any given time.

  • Disclaimer: The information provided by CryptopianNews is for educational and informational purposes only. It should not be considered financial or investment advice. Cryptocurrency markets are highly volatile and speculative, and investing in them carries inherent risks. Readers are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions.

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