Bitcoin prices fell sharply on Monday, falling below $ 30,000, the lowest level since July 2021.
More than 40% of Bitcoin’s supply suffered unrealized losses as crypto market sales hit a low of $ 29,996, reflecting Monday’s bloody Wall Street. Glassnode’s on-chain data also suggests that more pain may remain when comparing the current outlook to the 2018 bear market outlook.
The situation can be exacerbated given the short-term correlation between Bitcoin and stocks. This means that as stock losses increase at higher rates and other macro headwinds, BTC can also plummet. Bitcoin, which can retreat above the $ 28,000 level, seems to be getting tougher.
However, according to Perianne Boring, CEO and founder of the Digital Commerce Chamber of Commerce, drawdowns are a “massive purchase opportunity.”
“Everything is down,” Boring said in an interview with CNBC’s “Squawk Box” on Tuesday, pointing out the defeats seen in the equity and bond markets during the Fed’s tightening. She told CNBC’s Andrew Ross Sorkin that low prices offer to buy dip opportunities.
“Bitcoin has only existed for 13 years. This is the first time #bitcoin has experienced a Fed tightening,” said @PerianneDC on the recent sale of #crypto. “Everything is down … this is the Wall Street mantra. Don’t fight the Fed.” Pic.twitter.com/hMjz5wmXi4
— Squawk Box (@SquawkCNBC) May 10, 2022
Among the biggest dip buyers of the week was El Salvador, which snapped 500 BTC worth over $ 15 million.
Bowling also said that people trade Bitcoin like traditional assets, but cryptocurrencies do not. Again, the focus has really been on the value of the network, but on the price of BTC.
Regarding where she thinks Bitcoin will go in the future, she said the fair value of benchmark cryptocurrencies based on the valuation model is currently between $ 48,000 and $ 180,000.
Bitcoin reached an all-time high of $ 69,000 in November, trading at current price levels almost 54% off its peak.