Cryptocurrency leader bitcoin once again took a hit, falling below $40,000 just over a month after it set its record high of almost $64K. At press time, the digital currency’s price is at $39,607 and is now down 30.4% for the past seven days.
Meanwhile, Bitcoin inflows to centralized exchanges have tremendously increased leading to speculations that the crypto markets could be in for a rude awakening and violent wash-out.
Data show 22,917 bitcoins were moved to centralized exchanges in just an hour on May 18 – the largest hourly flow since the infamous March 2020 “Black Thursday” crash.
On-chain crypto analytics firm Glassnode compiled data showing consecutive all-time highs in a net transfer of bitcoin to leading cryptocurrency exchange Binance. It showed almost 35,000 bitcoin valued at $1.4 billion was deposited on the exchange for the past 48 hours.
Expecting a bullish return
Despite the bearish momentum bitcoin is having for the past days, some analysts believe there are still reasons to be in bullish vibes.
Lark Davis, being one, has pointed out that the recent fall of the crypto moved its 14-day relative strength indicator to the oversold territory indicating the current crash will soon stabilize.
While some call the recent run of Bitcoin “capitulations,” others think this could be a catalyst for a bullish recovery once selling nears the point of cessation.
A series of unfortunate events
Last week, Tesla Chief Executive Officer Elon Musk announced the electric car company will stop accepting bitcoin as payment because its mining process is not environmental-friendly enough for them.
For similar reasons, another electric car company in Fisker Inc. shunned cryptocurrency as a form of investment.
And, just this morning, the People’s Bank of China warned local businesses and institutions about dabbling into Bitcoin and cryptocurrencies. Shortly after, Bitcoin plummeted to the $39K level.
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