Bitcoin Price Hints at Bottoming out after Crypto AUM Touches Record Low

    Whenever an asset gets bogged down in a prolonged decline, people look at charts and indicators that might suggest that the price has bottomed out. For Bitcoin, plenty of action indicates that such formation occurs through technical signals.




    The Bitcoin Reaching its Bottom Price

    Glasnode analysts track the number of indicators, such as when Bitcoin goes below a moving average or when it closes below a balance price measure which reflects the value of coins realized against the value paid. Analysts are seeing these measures moving in a similar manner that rarely happens.

    Analysts say that similar patterns have been seen only six times in the last five years. Some have coincided with bottoms seen in the bear market in November 2018 and March 2020. The question is whether, if this time, it will be otherwise.

    Thursday saw Bitcoin closing its worst quarter on record with a 60% decline in value from April to June. Since November 2021, the coin has lost 70% of its value. As per Arcane Research, bitcoin’s trading value has dropped substantially in this environment.



    Meanwhile, the Asset under management (AUM) for crypto investment products reached a record low in June. As per CryptoCompare, the ETFs experienced the largest decline of more than 50% to $1.3 billion.

    The usual culprits to blame is the Federal Reserve for increasing the interest rates to tame inflation even if it means sell-off in multiple asset classes that sour sentiment and injure the economy. The downturn has impacted a growing list of lenders, hedge funds, and crypto firms. Dan Morehead of Pantera Capital recently said that more significant meltdowns are expected in the coming months.

    Ross Mayfield, an investment strategist at Baird, said that plenty of pain has already been factored in the crypto coin, especially Bitcoin. But this does not mean it will not go lower as the Federal Reserve will continue to raise rates. The appetite for speculative and risky assets will be meager.

    According to Arcane Research, on-chain activities are high during a bull market and the market crash when players offload their positions. Such activities drop when the price stabilizes at a lower level. The Bitcoin blockchain has gone into a hibernation phase.

    One positive sign is seen when Brett Munster of Blockforce Capital highlights that coins are taken out of cold storage and put back into exchanges during bear markets. This indicates an intention to sell, but that is not happening now.

    Munster wrote that they have seen a steady flow of Bitcoin out of the exchanges and accumulated for the long term. The number of wallets with amount more than zero is increasing, for Bitcoins are growing, among other developments. He said that unlike the drop in demand for bitcoin in 2018, there are slowing down signs today.



    RELATED ARTICLES

    investing in Crypto

    Investing in Crypto: A Guide for Smart Investors & Fundamentals

    Investing in cryptocurrencies has turned out to be an international phenomenon, attracting each institutional and...
    How To Find the Best FD Interest Rate for Senior Citizens Using an FD Interest Calculator

    How To Find the Best FD Interest Rate for Senior Citizens Using an FD Interest Calculator

    FDs are one of the most preferred investment products for senior citizens as they offer...
    online jobs for students

    Online Jobs for Students: Best ways to Earn Money & Build Skills 

    Balancing academics and price range can be challenging for college students, but online jobs offer...
    Best Trading Apps to Open a Demat Account

    Best Trading Apps to Open a Demat Account: Features & Fees

    Investing in the stock market has become more accessible than ever with trading apps that...
    5 Mistakes to Avoid for Choosing the Best Share Market App

    5 Mistakes to Avoid for Choosing the Best Share Market App

    Investing in the Indian share market is now easier than ever in the current digital...
    Wheon.com finance tips

    Wheon.com finance tips of 2025: What’s Changing and Why It Matters

    The financial world never stands still, and 2025 is no exception. This year, we’ve witnessed...
    How AI Headshots Can Elevate Your Business Image Instantly

    How AI Headshots Can Elevate Your Business Image Instantly

    We're living in a world where everyone's first impression comes from the digital environment of...
    5 Ways AI Software Can Streamline Your Business Operations

    5 Ways AI Software Can Streamline Your Business Operations

    We live in a fast paced technological world or businesses are under the pressure to...
    pagalmovies bond

    Pagalmovies Bond: Safe Alternative to Download 1080p Movies!

    Accessing films via platforms like Pagalmovies often leads to legal and security headaches. Ever wondered...
    How to save money on Pinterest ads the best virtual cards for media buying

    How to save money on Pinterest ads: the best virtual cards for media buying

    Media buying on Pinterest requires precise budget management. Advertising expenses can be optimised by choosing...
    robots dot to dot nattapong

    Robots Dot to Dot Nattapong: Mind-Blowing Concepts!

    Robots dot to dot Nattapong unveils a fascinating intersection of creativity and technology. Ever wondered...