The price for BTCUSD traded down -37.9% this June — competing for the worst month on record
Price gains over the last weekend provided much-needed relief from the relentless selling that we have seen in Bitcoin (BTC) — this year in general, and for the month of June in particular. As has been the case recently, BTC has tracked sentiment in U.S stocks. We are probably not going to see a bottom in the price of cryptocurrencies until we see a similar situation develop in Equities. While the U.S markets have rebounded from their earlier lows today, the risk-off sentiment is still abundantly evident — emanating from recessionary fears.
Coming back to the performance of Bitcoin in the first half of 2022, the premier crypto has posted one of the worst monthly price performances in history (chart above). According to the data from Glassnode, its price has traded down -37.9% over the last 30-days, competing only with the 2011 bear market, for the crown of the worst month on record. At the time of publishing, the BTCUSD was trading close to $20.2k, up from an earlier low of $19.3k.
Bitcoin’s struggle with this important level of $20k has continued for the past few weeks. While Bitcoin has shown resilience to any further losses below this level, the macroeconomic picture is heavily skewed towards more downside risks. Exchange balances for BTC are draining at historically high levels, and Shrimp and Whale balances are increasing meaningfully.
According to Glassnode, spot-buying whales who have over 1k BTC have been purchasing more coins during this crypto winter. Cumulatively, they have been buying up about 140k BTC per month from crypto exchanges and now own 8.69 million BTC which is about 45.6% of the circulating supply.
On the other hand, sharks (1k to 10k BTC) have been increasing their wallet balances at an alarmingly slow rate. Shrimps (wallets with one or less than 1 BTC) have also been capitalizing on Bitcoin’s firesale, adding 36.75k BTC per month in the past two quarters. It could be best described as a mixed picture for digital assets as we enter the third quarter.
Originally Published on Medium
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