2022 saw Bitcoin struggling, with the leading crypto losing over 70% from its ATH to explore the $17K lows. Such tendencies had most crypto analysts and pundits announcing the start of crypto winter, meaning prolonged bear markets. Nevertheless, the market will likely go against the expectations of many, and that’s the scenario here.
Bitcoin, the leading crypto, saw similar events this month. The asset’s highest transaction of July emerged at the bottom. That means whales (dominant buyers) took the opportunity to accumulate at discounted rates during the dip.
Meanwhile, a graph shows transactions volume starting to normalize. That might suggest that buyers purchased the dip as the cryptocurrency displayed recovery signs. Nevertheless, here is a fascinating tale from Santiment, an analytics firm.
A new BTC address (35PPdr9CSZuqwy2S7vj9ResHQCVTsYuB3z) dominated July headlines after receiving 50.56K $BTC on July 8. That means a positive signal for the top crypto by value. Moreover, the transaction saw the mentioned address increasing its value to $1.178 billion from $0. That’s rarer than a $1M transfer and one among the highest of 2022.
Did that help the Bitcoin network? Indeed, it certainly contributed to mellowing down the shorting tale. BTC blasted off as traders targeted to ‘short’ the platform at the highest pace in about four months.
Bitcoin recorded an impressive bounce back in July. Though profit-booking kept a neutral-modest rate, when compared to alts like Ethereum, profit to loss on-chain transaction volume painted a bullish picture.
The primary question remains; Can Bitcoin sustain this trajectory? Or, we should expect new developments from the current bearish phase. Well, the leading name within the crypto-ocean goes with the latter. The Bear Markets in Perspective report by Grayscale indicated that the prevailing bear market could last for additional 250 days. While publishing this blog, Bitcoin endured a new retracement as the asset dropped towards the $22.8K level. Is the mentioned forecast underway? Only time will tell.
What are your opinions about the current market status and Bitcoin? Are we still in for rough rides? You can leave a reply in the comment section below.