The bitcoin priceand therefore of Ethereum and other altcoins, fell below $24,000. It seems that there are different origins of this fall, some are in the cryptocurrency segment and others are external factors. But, we have to look beyond Bitcoin price at some point.
As of this writing, Bitcoin is losing over 14% over a 24-hour period and 26% over a 7-day period. Ethereum having a bad time, since loses nearly 16% in 24 hourss and more than 36% in a period of 7 days.
Bitcoin Price Falls Below $24,000
One of the reasons for this fall is that the Celsius fintech protocol ceased its activities. It seems that he is currently in a rather negative situation. It is quite common for worthless protocols or projects to eventually collapse and drag down Bitcoin and other cryptocurrencies.
But there are other issues causing Bitcoin’s steep decline. The international economic situation is far from good. The asian markets sell futures and the future of Wall Street show a downtrend which dates back to last week.
The United States is in a very bad economic situation. It is very worrying the inflationand everything awaits United States Federal Reserve June 15 data.
One of the most interesting data is perhaps given by CrediBULL on its Twitter account. Watch out it’s over from 11 million bitcoins in HODL to over 13 million. This means that we are at a point of accumulation, not distribution. But the reality is that it is not sold, nor has it been sold, on the contrary, there is a process of accumulation.
Here is your smart money. Since our Wave 3 peak at 65k they have increased $BTC farms of approx. 11M to over 13M. This is a reaccumulation range, not a distribution range. Look at the comments below – most say “they have to sell” or “they already sold”. No, the data doesn’t lie. https://t.co/LVLhiNWNxM pic.twitter.com/2QqXEKWmDY
— CrediBULL Crypto (@CredibleCrypto) June 13, 2022
We have to keep in mind that Bitcoin price is cyclical. After hitting all-time highs (also known as ATHs), there is usually a period of correction. It happened in 2016, when I hit $20,000 and then went down to $4,000. After reaching the $65,000 figure, we are in another period of price readjustment.
Hash rate and commissions are other good indicators
There are two parameters that show the good health of the Bitcoin network and that show that we must look beyond the price. A distinction must be made between the value of the network and the market price, which are not the same. Something that is generally confused.
If we analyze data from bitcoin hash rate or mining power, the situation could not be better. In June 2021, we saw a 60% drop in hash rate due to the mining ban in China. As we can see from the chart, it is currently much higher than it was before this event. Something that shows the good state of this cryptocurrency.
Another piece of information concerns Bitcoin transaction fees. Currently, the The cost per transaction averages around $1.5. But not only is the commission price very low, the use of the Red Lightning Network. More and more users are betting on making transactions in the second layer of Bitcoin to have commissions of practically 0 dollars and be executed instantly.
Now might be a good time to buy some sats (the most basic unit bitcoin is divided into). Always with a head, a small sum that we do not need in the short or medium term and that we can afford to “lose”. We refer to losing a drop in price (like this) and the amount of which has decreased in relation to the money invested.
