The global crypto market cap increased by 1.83 percent to $1.26 trillion on May 22, indicating that most cryptocurrencies benefited.
After failing to hold the $30,000 level, Bitcoin (BTC) has continued to decline. Volatility has decreased recently, implying that there will be fewer abrupt movements over the weekend. If the rate falls below $29,000, the crypto could hit the $28,000 zone next week.
BTC to Lose 52% of its Value?
One statistic is flashing a major warning flag for Bitcoin (BTC) investors, according to the CEO of renowned on-chain analytics firm CryptoQuant.
Ki Young Ju warns his 292,600 Twitter followers that historical data suggests Bitcoin might fall to $14,000. Based on past maximum drawdowns, BTC could drop so badly owing to the macro crisis that all Bitcoiner institutions go underwater.
Bitcoin is currently trading at $29,277, up 0.34 percent from its last high. BTC faces a 52 percent negative risk if it moves to the analyst’s price target.
The most recent Bitcoin investors, according to the quant analyst, will likely be deep underwater if market values fall into his worst-case scenario.
Following the UTXO age bands statistic, which records the prospective price level where long-term holders accumulated BTC, Ki Young Ju calculates the average entry price for each generation of Bitcoin investors over the past 11 years.
Ethereum:
The CEO of CryptoQuant then turns his attention to Ethereum, the most popular smart contract platform (ETH).
He emphasises that despite a large price drop, the ETH ecosystem remains strong due to increased interest in new blockchain sectors including as decentralised finance (DeFi), non-fungible tokens (NFTs), decentralised autonomous organisations (DAOs), and play-to-earn blockchain games (GameFi).
While the price of ETH has declined by 56% from its peak, the number of active addresses has only reduced by 7%.
Today, Ethereum has 551,705 DAU (Daily Active Users) if each address is considered a user. These are unconcerned about the price of Ethereum and instead invest in DeFi, NFT, DAO, and GameFi projects.”
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Source: https://coinpedia.org/bitcoin/bitcoin-downtrend-to-continue-this-week-btc-price-on-verge-to-plunge-52/