Bitcoin is approaching $27,000, is it the beginning of a bullish run?

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16 May, 2023

Bitcoin's price on Tuesday was $26,985 (roughly Rs. 22 lakh) on domestic and international exchanges, and the digital currency appears to be nearing recovery. With a minor loss of 0.70%, the world's most expensive cryptocurrency saw its price plummet by $27,180 (about Rs. 22.3 lakh) in the past 24 hours - a drop of $195 ( approximately Rs. 16,032). Ether also recorded losses like Bitcoin. ETH posted a loss of 1.37% on Tuesday, according to crypto price tracker Gadgets 360. Ether is currently trading at $1,809 – down $16 (around Rs 1,315).

“BTC and ETH have been limited. However, BTC's value is holding up relatively well and is currently above its 200-week average. In parallel, Lido (LDO) upgraded to its second iteration on Ethereum last night, driving prices up >7% in the last 24 hours. Bullish sentiments appear to be gradually recovering as the Crypto Fear and Greed Index stands at 54, up four points from yesterday. Crypto-cautious investors, however, continue to watch from the sidelines,” Parth Chaturvedi, Chief Investment Officer, CoinSwitch Ventures told Gadgets 360.

Many other cryptocurrencies saw their prices drop on Tuesday, including Binance Coin, Cardano, Solana, Polygon, Polkadot, and Avalanche.

The two meme-coins Dogecoin and Shiba Inu also lost value.

“Market makers have pulled out of US crypto trading due to liquidity and regulatory concerns. Analysts await debt ceiling talks to assess whether investors view Bitcoin as a safe-haven asset amid regulatory uncertainty,” Rajagopal Menon, VP of WazirX told Gadgets 360.

According to CoinMarketCap, the market capitalization of the crypto sector stood at $1.13 trillion (roughly Rs. 92,68,725 crore) on Tuesday.

Meanwhile, Tether, USD Coin, and Binance USD saw their prices rise. These stablecoins were also joined by Bitcoin Cash, NEO Coin, Iota, and Zilliqa, which also increased in value.

Despite the continued downturn in the crypto sector, experts believe that activity around cryptocurrencies is still ongoing. “A notable indicator of potential upward momentum for Bitcoin, for example, is the decline in the Stablecoin Supply Ratio (SSR), which has fallen around 11% over the past 11 days. SSR is a key metric "used to gauge buying pressure in the market, with lower readings suggesting an increase in purchasing power. These developments bode well for Bitcoin's price trajectory, potentially pushing it higher in the near term," the CoinDCX research team told Gadgets 360.

In another encouraging development for Bitcoin, the number of wallet addresses containing at least one whole BTC has surpassed one million milestones. This significant growth in numbers indicates a broadening base of Bitcoin holders who have accumulated enough cryptocurrency to own at least one full unit. “The increase in the number of these addresses, with approximately 190,000 added since the start of February 2022, has coincided with a decline in the price of Bitcoin,” the CoinDCX team added.