Record sell-offs intensified at the first trading session of the week with many altcoins including Ethereum losing more than a quarter of their value. Bitcoin dropped as much as 18% on market sentiments.
The drop pushed the value of Ethereum and Bitcoin downward, as they lost more than half their value from all-time highs sighted in mid-April.
Recently, the flagship crypto was trading around the $35,000 price levels amid buying pressures prevailing from Bitcoin’s 3-month price area. It is critical to note that the pioneer crypto reached as low as $31,200 on Sunday afternoon, wiping out its year-to-date gains.
Ethereum also broke below the $2,000 price level amid high selling pressures, losing about half its value in just one week. When considered from a broader perspective, however, Ether is still up by 160% year-to-date and had recovered above $2,000 at the time of drafting this report.
Investors’ bullish sentiments evaporated when Wednesday’s price drawdown printed its largest liquidation scenario in the Bitcoin’s market, as billions of dollars were wiped off when Bitcoin lost about $10,000 with a few hours.
Data from Glassnode gives support to this bias, revealing this correction has been the worst ever seen including the sell-offs recorded in 2017; and is the biggest bull market correction since the consolidation period around 2013.
Though recent data suggests that retail investors and few whales might have triggered the present sell-offs, after the big plunge recorded on Wednesday, exchange inflows have normalized and were not negative, with over-the-counter desk outflows bouncing during the dip, showing strong buying from large entities.
Still, many markets strategists are having an uphill battle giving a futuristic pattern on the crypto market after its volatile rout. With more headwinds likely, JP Morgan, the world’s most valuable bank, recently highlighted it was too early to call off the bearish run as regards the flagship crypto.
“It is too early to call the end of the recent Bitcoin downtrend,” the JPMorgan strategists wrote Friday, citing in part, momentum signals and a lack of buying in Bitcoin funds and regulated futures.
In addition, many leading crypto assets including Bitcoin are still sitting on major gains over longer time-frames. Using the yearly time frame especially, these assets are still posting returns fairly better than many traditional investments.
Though the world’s most popular crypto posted its worst-performing bull market in history, recent price actions suggest investors are still accumulating at record levels with recent data from Glassnode, a well-known crypto analytic firm, showing wealthy investors holding 10k-100k Bitcoins added 122,588 BTC to their holdings in aggregate after the dip that occurred on Wednesday.