What Will Be The Future Trend of Bitcoin as The Crypto Circle Is in Turmoil and NFT Dives?
2022-05-23 15:53:44
Poor Cryptocurrency Market Affects NFT Sharply Down As Bitcoin
Since August 2021, when NFT rocketed into the public eye and the trading market, it has become the new star of the art collection market, the social currency of the trendy circle, and the new favorite of the investment world. Unfortunately, NFT became a hot topic again but with keywords such as "diving trading volume", "IQ tax bust" and "selling off" in May 2022.
Data from Opensea, the world's largest NFT trading platform, shows that the global NFT transaction volume was about $37.67 million on May 19, down about 92% from the data on May 1. And according to Google data, NFT's global hotness index has been gradually declining since mid-January this year, and the NFT global hotness index dropped nearly 70% in the second week of May compared to mid-January.
The precipitous fall in the cryptocurrency market implicates NFT "but does not mean that the NFT industry itself is at fault". In terms of the external environment, the recent decline in the three major U.S. stock indices, which has affected cryptocurrencies, is undoubtedly an important factor in the recent turmoil in NFT. The "de-anchoring" of the third largest stable coin in the cryptocurrency market, UST, and its sister token, Luna, has announced the sharpness of this round of turmoil.
According to Coindesk data, USTs and Luna have seen significant declines since May 10. On May 16, the UST, which is supposed to anchor a dollar value, once fell to an all-time low of 6 cents per coin, a 94% drop. As of May 20, Luna fell to $0.000152 per single coin, nearly zero.
The #1 stable of cryptocurrencies- Bitcoin - also saw its price drop quite a bit during this turbulent phase of the market. At one point in April, the price was as high as $48,000 and many predicted that it would exceed $50,000. To our surprise, Bitcoin is now trading at $30,129.52 on the Gate.io international digital currency exchange, with a 24-hour trading volume of $17,795,159,254. The price has dropped 62.7% in the last month. The entire NFT market is in a state of panic due to the impact of the current price drop in Bitcoin.
As the price of Bitcoin continues to hover around $30,000, one online cryptocurrency analyst, Rager, says there could be more downside for the top cryptocurrency. The analyst told his more than 207,000 followers that the bottom of the decline could still be months away, judging by the Bitcoin price history. He tweeted, "After a 190-day decline from all-time highs, Bitcoin needs another 150 to 200 days to bottom in the last few cycles."
Based on the previous cycle bottom, he said Bitcoin "could be down another six to eight months" based on the previous cycle bottom. Rager noted that investors should keep an eye on the 200-week moving average (MA), a key support level during Bitcoin's bear market in 2014 and 2018. If the Bitcoin price live rebounds again, he said, that would be a "good thing.
Note: This article is not professional financial investment advice. Cryptocurrency is a high-risk investment, please consider it carefully before investing.
Since August 2021, when NFT rocketed into the public eye and the trading market, it has become the new star of the art collection market, the social currency of the trendy circle, and the new favorite of the investment world. Unfortunately, NFT became a hot topic again but with keywords such as "diving trading volume", "IQ tax bust" and "selling off" in May 2022.
Data from Opensea, the world's largest NFT trading platform, shows that the global NFT transaction volume was about $37.67 million on May 19, down about 92% from the data on May 1. And according to Google data, NFT's global hotness index has been gradually declining since mid-January this year, and the NFT global hotness index dropped nearly 70% in the second week of May compared to mid-January.
The precipitous fall in the cryptocurrency market implicates NFT "but does not mean that the NFT industry itself is at fault". In terms of the external environment, the recent decline in the three major U.S. stock indices, which has affected cryptocurrencies, is undoubtedly an important factor in the recent turmoil in NFT. The "de-anchoring" of the third largest stable coin in the cryptocurrency market, UST, and its sister token, Luna, has announced the sharpness of this round of turmoil.
According to Coindesk data, USTs and Luna have seen significant declines since May 10. On May 16, the UST, which is supposed to anchor a dollar value, once fell to an all-time low of 6 cents per coin, a 94% drop. As of May 20, Luna fell to $0.000152 per single coin, nearly zero.
The #1 stable of cryptocurrencies- Bitcoin - also saw its price drop quite a bit during this turbulent phase of the market. At one point in April, the price was as high as $48,000 and many predicted that it would exceed $50,000. To our surprise, Bitcoin is now trading at $30,129.52 on the Gate.io international digital currency exchange, with a 24-hour trading volume of $17,795,159,254. The price has dropped 62.7% in the last month. The entire NFT market is in a state of panic due to the impact of the current price drop in Bitcoin.
Renowned Cryptocurrency Analyst Predicts Bitcoin Will Continue to Fall
As the price of Bitcoin continues to hover around $30,000, one online cryptocurrency analyst, Rager, says there could be more downside for the top cryptocurrency. The analyst told his more than 207,000 followers that the bottom of the decline could still be months away, judging by the Bitcoin price history. He tweeted, "After a 190-day decline from all-time highs, Bitcoin needs another 150 to 200 days to bottom in the last few cycles."
Based on the previous cycle bottom, he said Bitcoin "could be down another six to eight months" based on the previous cycle bottom. Rager noted that investors should keep an eye on the 200-week moving average (MA), a key support level during Bitcoin's bear market in 2014 and 2018. If the Bitcoin price live rebounds again, he said, that would be a "good thing.
Note: This article is not professional financial investment advice. Cryptocurrency is a high-risk investment, please consider it carefully before investing.
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