In the early hours of Monday (May 9), the Bitcoin price plummeted to an intraday low of approximately $33,196 (on Bitstamp), the lowest level since July 23, 2021. This prompted one well-known cryptocurrency analyst to explain why the $BTC price could fall as low as $24,300 in the future.
He believes the worst is yet to come because the Bitcoin price has historically fallen to its realized price (which is currently around $24,300 in nearby markets), according to Dylan LeClair, Head of Market Research at Bitcoin Magazine and Senior Research Analyst at UTXO Management, as well as Co-Founder of 21st Paradigm.
Data from blockchain analytics startup Glas+snode shows that the hash rate for bitcoin has reached a one-month low, according to the company.
The well-known Crypto Fear & Greed Index has reached the level of “Extreme Fear” in terms of the current state of mind of the cryptocurrency market.
Bitcoin, equities and virtually all non-stablecoin cryptoassets are all failing right now, and the fundamental cause for this is unquestionably the macroeconomic headwind of rising interest rates, which has exacerbated the situation (due to central banks trying to bring down inflation). Geopolitical warfare are rendered ineffectual in this atmosphere as well.
In addition, issues with the Terra ($LUNA) ecosystem exacerbated the situation for the cryptoasset sector over the weekend, with some analysts speculating that if things get really bad, the Luna Foundation Guard may be forced to sell some or all of its Bitcoin holdings, further depressing the value of the cryptocurrency.