It has been a week to forget for the cryptocurrency ecosystem as the market cap of virtual assets collectively witnessed a major slump. Since July 10th, the market has recorded a collapse of more than $70 billion, equivalent to almost 21 percent of the entire market cap. It is thus safe to say that the general market sentiment is anything, but positive.
Now, according to statistics released by tokenanalyst, major exchanges like Binance, Bitstamp, and Bittrex recorded serious capital outflow over the last 24 hours. It was observed that in terms of Bitcoin [BTC], Binance recorded a change of 34.61 percent over the last 24 hours, in terms of Inflow capital.
On the other hand, Bitstamp recorded an outflow of over $178 million in Bitcoin, with only $50 million coming into the exchange.
This trend was common to other exchanges as well, with a majority of them recording negative BTC inflows.
It was speculated that the market’s present bearish traits and volatility had caused “panic selling” among investors and users, most of whom who want to sell their assets before Bitcoin plummets further in valuation.
At press time, Bitcoin was hovering just under the $11,000 mark, keeping above the psychological resistance of $10,000. Bitcoin peaked on 26th June this year with a price valuation of $13,800. However, it soon fell and continuing stagnant price movement has the community worried.
Based on the cryptocurrency’s behavior in the past, Bitcoin under-performs during the middle of the year, something observed before the surge in 2017. The community’s main concern is that if Bitcoin continues its bearish behavior, Bitcoin might fall down to the $8000-$8500. The aforementioned price range would completely invalidate the gains achieved by Bitcoin over the last 2 months.
Josh Rager, a popular Crypto-analyst, expressed his opinion on the same and assured everyone that the current situation was a blessing in disguise. He said,
“Said it once and will say it again. 4 digit Bitcoin is a gift. Whether it hits $9ks or even $8ks.”