Cryptocurrencies and NFs have largely followed the negative trend in the stock market as investors across various asset classes reacted to signals of further rate hikes.
Last night and this morning, it fell below $34,000 to a nearly 4-month low, the lowest level since January, with a year-to-date decline of about 30% and a 50% drop from the November 2021 peak of $67,800. At the same time, it fell below $2,500, with a drop of more than 3% in the last 24h.
The global cryptocurrency market fell more than 2% in the past 24 hours to $1.65 trillion, according to CoinGecko data.
Not only the cryptocurrency market, but the NFT market is also dominated by declines.
According to NFTGo.io data, in the past 24 hours, the trading volume of Otherdeed has dropped by nearly 50%, that of MutantApeYachtClub (MAYC) has dropped by about 46%, and the Azuki series NFT has dropped by 15.58%. As of 12:00 on the 9th, the Azuki series NFT floor price was 20.95ETH, a 24-hour drop of 4.2%. The floor price of Bored Ape Yacht Club fell below 100ETH to 96ETH, a decrease of 13.67%.
According to the latest research from blockchain analytics firm Glassnode, it is still in the midst of a crypto bear market, according to the Mayer multiplier indicator. One of the most well-known Bitcoin indicators and a favorite of the crypto community, the Mayer Multiplier is a simple ratio between the price and the 200-day moving average. Despite its simplicity, it provides a strong and reliable long-term bottom and top formation indicator for the Bitcoin cycle.
Glassnode plots a Mayer multiplier of 0.8x as a historically “undervalued” level, based on the fact that less than 15% of Bitcoin’s trading hours are at or below this level. With the 200-day moving average at $47,275, this 20% discount level is currently at $37,820. This indicator suggests that the initial phase of the late bear market may have passed and the second half of the bear market may have been entered. However, based on previous cycles, it also suggests that it may be a while before the market provides enough demand and price appreciation to achieve sustainable profitability and capital inflows.
Carter Braxton Worth, founder of Worth Charting, believes that Bitcoin could quickly drop another 13% to $30,000. Support on the chart dates back nearly a year to June 2021, when Bitcoin was around $29,000. This support level is likely to come into play as Bitcoin drops $1,200 to $34,600 over the past few hours. One of the biggest risks is Bitcoin falling further, becoming a risk-off asset as the Fed raises interest rates and fixed-income investing becomes an alternative.
“Shark Tank” star investor Kevin O’Leary said that Bitcoin remains in a very tight buying and selling range, and there are not many people who own BTC, and now only retail Traders, high net worth traders, some hedge funds and professional funds hold BTC, but no sovereign wealth funds hold BTC. No sovereign wealth fund holds BTC, meaning there are no buyers to back the market when the cryptocurrency falls, and even with a small 1% sovereign mandate, that could change.