Bitcoin (BTC) is currently going through one of the worst corrections in its history. On 18 June 2022, the world’s most valuable digital asset dipped below $20,000 for the first time since early December 2020. According to the latest data published by Coinmarketcap, Bitcoin touched a low of $19,100 on Saturday.
The crypto crash accelerated in the past week after a 35% dip in BTC. As a result, the total value of global digital assets plunged below $900 billion for the first time in almost 18 months. In November, the crypto market cap reached an all-time high of over $3 trillion.
“Sentiment toward Bitcoin remains expectedly negative following the 40% price freefall in the past 30 days. The last time there was such a long negative streak was from mid-June to late July of 2021 (7 straight weeks). Prices jumped +38% following that streak,” crypto analytics platform Santiment noted in a recent Tweet.
With the recent crash, Bitcoin has now lost over 72% of its value in the past 7 months. The crypto asset remained the second-worst performing digital currency among the top 10 last week, just behind Ethereum’s 40% price plunge.
The data across the Bitcoin network shows that the active and profitable supply of BTC has dropped significantly in the last few weeks. Amid tough market conditions, BTC’s dormant supply has surged.
“Bitcoin’s supply on exchanges has dropped rapidly. After an uptick of panic sells in early May, this is indicative of holders who stuck with BTC through this downfall being content with volatile markets at this point and willing to ride it out,” Santiment added.
Institutional Bitcoin inflows have also dipped sharply in the past few months. According to CoinShares, BTC investment products witnessed outflows worth $57 million last week. Month-to-date outflows stood at around $100 million.
This article was written by Bilal Jafar at www.financemagnates.com.