The crypto market is crashing again after a recovery period at the start of the week. Over the past day, the global crypto market cap has decreased by 3.98%, trading at $1.24T. Meanwhile, the total crypto market volume over the last 24 hours is $80.77B, representing an increase of 0.20%.
Bitcoin Back Below $30K
Bitcoin, the top crypto by market cap, is trading at $28,804.17, 4% lower than yesterday. Ethereum followed suit with a drop and is now trading at $1,943.08, a 5% decrease over the past 24 hours.
After a slight rally in price during the previous session, the sentiment in the markets turned negative on Wednesday. The movement prompted Bitcoin to fall to a low of $28,804.17. It was less than 24 hours after reaching a high of $30,694.49.
The bitcoin price continued to consolidate on Wednesday as investors remained cautious due to the current volatility in the markets. Looking at the chart, the 14-day relative strength index (RSI) is currently at 33.87, which is below a ceiling of 35. Notably, the 14-day RSI indicates that it is still deep in the oversold territory and moving closer to the $28,800 support level.
According to data from Glassnode, there were only $38.7 million in outflows from bitcoin and $64.5 million in Ethereum to private wallets over the past 24 hours. These were in line with the overall theme of stabilization.
Meanwhile, Whale Alerts, a blockchain transaction monitoring service, reported that a massive amount of bitcoin, worth over $70 million, was transferred from a Coinbase wallet to a private one showing a whale making a whale dip buy. The move can be attributed to the low crypto prices,
Ethereum is Trading Below $2K
According to the on-chain analytics platform Santiment, the recent price decline could trigger a potential bull market. The platform has stated that its NVT model predicts a bullish divergence, owing to the recent price dip. A “bullish divergence” occurs when prices fall while the oscillator does not. This could indicate that bears are losing ground and that bulls are likely to take control soon.
According to Santiment Insights report, “ETH’s MVRV 90D, which measures the mid-term profit/loss of holders, is showing that we are almost into the opportunity zone, which historically saw a local bottom being developed with a decent R/R.”
The number of addresses holding over a hundred coins has reached a six-month high, which suggests that there has been an increase in the number of investors, according to Glassnode Alert data.
Meanwhile, in preparation for the upcoming migration to Proof-of-Stake (PoS), cybersecurity company Cloudflare plans to fully deploy its blockchain infrastructure in the next couple of months. The move might prove quite crucial for Ethereum’s price in the coming months.
A Changing Stablecoin Preference?
According to data from Glassnode, on Wednesday, the amount of money withdrawn from the stablecoin market shifted to the other cryptocurrencies, such as BUSD and USDC. Since the collapse of TerraUST, around $7.5 billion worth of USDT tokens have been replaced with cash equivalents, taking the coin’s total market cap to around $74 billion.
Around $4.0 billion worth of USDC has been issued, making it one of the largest stablecoins by market cap. Likewise, the market cap of BUSD has increased significantly, rising from around $17 billion to about $18 billion.
According to James Check, an analyst with Glassnode, the preference for stablecoins could be changing owing to the TerraUSD collapse. He said that he believes that a group of traders might have been trying to put pressure on the USDT by using the event as a catalyst.