Bitcoin Weekly: April 4th-10th
The Bitcoin market gradually climbed down last week, with approximately $4,000 taken off its value throughout the course of the week. The BTC exchange experienced a net outflow of 90,000 Bitcoins throughout the course of the previous month of March, which has set the tone for the first part of the April month. Miners holdings have also slowed down, to 1.862 million, about the same level as the beginning of the year and thus reflecting the overall mood within the market.
Long term holders of Bitcoin currently hold approximately 13.41 million Bitcoin, which is down around 100,000 against its high position. Long term holders tend to invest in bear or shock markets, and distribute their earnings for take-profit in rising markets, so we may see these holding levels increase over the coming week. They certainly are not in the mass payout phase just yet, anyway.
There are many macro-external events that are continuing to affect not only the price of Bitcoin, but the price of the market in general. We have seen over recent weeks that crypto cannot operate within its own sphere, protected from events occurring across the world, and this is being highlighted more and more by the current market outlook. The inversion of the US Bond yield curve, relating to the high inflation being experienced across America, is making the market very risk averse as the consequences of a potential recession linger over it. Bitcoin is not immune from this.
Looking ahead to this week, markets continue to fall and Bitcoin is no different. At the time of writing, BTC has fallen beneath the $40k mark, however it has bounced back ever so slightly to creep back into the 40s. While still a good way off the lows of February and March, traders will want to see some kind of upward mobility in the world’s most popular cryptocurrency before confidence is restored in the market. The concern will not necessarily be whether the Bitcoin can (and almost definitely will based on historical data) recover — the concern will more be focused on the fact that this has been the third bear market in as many months, and more stability in the market is vital for its long term feasibility.