{"id":234085,"date":"2022-05-12T22:00:20","date_gmt":"2022-05-12T16:30:20","guid":{"rendered":"https:\/\/ambcrypto.com\/?p=234085"},"modified":"2022-05-13T17:22:40","modified_gmt":"2022-05-13T11:52:40","slug":"btc-drops-to-lowest-point-since-dec-2020-expect-this-from-latest-crash","status":"publish","type":"post","link":"https:\/\/ambcrypto.com\/btc-drops-to-lowest-point-since-dec-2020-expect-this-from-latest-crash\/","title":{"rendered":"Bitcoin reaches lowest point since Dec 2020; here&#8217;s what to expect"},"content":{"rendered":"<p>On 12 May, BTC dropped to its lowest valuation of $26,350 since December 2020. There is an uncanny resemblance between this crash with the mid-season crypto breakdown in May-June 2021.<\/p>\n<p>In both crashes, the price of BTC dropped below the all-important support level of $30,000. Back in June 2021, it reversed back from $29,800 but this time around it has dropped further to around $26,300.<\/p>\n<p>Again, in both instances, there were several macroeconomic factors at play that decided Bitcoin\u2019s fate. In the spring of 2021, Chinese banks <a href=\"https:\/\/www.cbsnews.com\/news\/bitcoin-price-2021-gains\/\">forbid<\/a> crypto services by financial institutions in the country. Elon Musk caused further trouble after &#8216;reversing&#8217; his decision to use Bitcoin for Tesla payments. These factors were coupled with the peak of the COVID-19 pandemic in major economies thereby plummeting BTC prices.<\/p>\n<p>The current crash is also the result of larger macroeconomic and geopolitical headwinds. The Russian invasion of Ukraine, and regulation issues in a period of global inflation puts the crypto market in turmoil. Fed regulations and legal ambiguity of crypto assets in major economies further put Bitcoin&#8217;s prices in a downward projectile.<\/p>\n<h3>Stat-Alert<\/h3>\n<p>After the recent crash, investors have been rushing to exit their holdings through exchanges with many holding on to their losses. The number of addresses in loss stands at an all-time high of 16,967,726. Such a peak was earlier observed more than two years ago on 19 March 2020.<\/p>\n<figure id=\"attachment_234090\" aria-describedby=\"caption-attachment-234090\" style=\"width: 2400px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/05\/FShf6DxWQAAyQAV.jpeg\"><img decoding=\"async\" class=\"wp-image-234090 size-full\" src=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/05\/FShf6DxWQAAyQAV.jpeg\" alt=\"\" width=\"2400\" height=\"1200\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/05\/FShf6DxWQAAyQAV.jpeg 2400w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/05\/FShf6DxWQAAyQAV-300x150.jpeg 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/05\/FShf6DxWQAAyQAV-1024x512.jpeg 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/05\/FShf6DxWQAAyQAV-768x384.jpeg 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/05\/FShf6DxWQAAyQAV-1536x768.jpeg 1536w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/05\/FShf6DxWQAAyQAV-2048x1024.jpeg 2048w\" sizes=\"(max-width: 2400px) 100vw, 2400px\" \/><\/a><figcaption id=\"caption-attachment-234090\" class=\"wp-caption-text\">Source: Glassnode<\/figcaption><\/figure>\n<p>Investors are being encouraged from market situations to shrug off their assets and liquidate them. This has resulted in a drop in the following metric. The number of addresses holding 1k+ coins reached a one-month low of 2,234. What\u2019s more interesting is that such a low was recorded on May 11 only.<\/p>\n<figure id=\"attachment_234089\" aria-describedby=\"caption-attachment-234089\" style=\"width: 2400px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/05\/FShtt5yXMAMFDUt.jpeg\"><img decoding=\"async\" class=\"wp-image-234089 size-full\" src=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/05\/FShtt5yXMAMFDUt.jpeg\" alt=\"\" width=\"2400\" height=\"1200\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/05\/FShtt5yXMAMFDUt.jpeg 2400w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/05\/FShtt5yXMAMFDUt-300x150.jpeg 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/05\/FShtt5yXMAMFDUt-1024x512.jpeg 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/05\/FShtt5yXMAMFDUt-768x384.jpeg 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/05\/FShtt5yXMAMFDUt-1536x768.jpeg 1536w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/05\/FShtt5yXMAMFDUt-2048x1024.jpeg 2048w\" sizes=\"(max-width: 2400px) 100vw, 2400px\" \/><\/a><figcaption id=\"caption-attachment-234089\" class=\"wp-caption-text\">Source: Glassnode<\/figcaption><\/figure>\n<p>The exit rush spiked the transaction volume on the Bitcoin network. The transaction volume here reached a new 4-year high of 175,146.8 BTC. It eclipsed the previous high, again, set on 11 May.<\/p>\n<figure id=\"attachment_234088\" aria-describedby=\"caption-attachment-234088\" style=\"width: 2400px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/05\/FSh7awGWQAAd31b.jpeg\"><img decoding=\"async\" class=\"wp-image-234088 size-full\" src=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/05\/FSh7awGWQAAd31b.jpeg\" alt=\"\" width=\"2400\" height=\"1200\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/05\/FSh7awGWQAAd31b.jpeg 2400w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/05\/FSh7awGWQAAd31b-300x150.jpeg 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/05\/FSh7awGWQAAd31b-1024x512.jpeg 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/05\/FSh7awGWQAAd31b-768x384.jpeg 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/05\/FSh7awGWQAAd31b-1536x768.jpeg 1536w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/05\/FSh7awGWQAAd31b-2048x1024.jpeg 2048w\" sizes=\"(max-width: 2400px) 100vw, 2400px\" \/><\/a><figcaption id=\"caption-attachment-234088\" class=\"wp-caption-text\">Source: Glassnode<\/figcaption><\/figure>\n<p>Meanwhile, Scott Melker, the host of The Wolf of All Streets Podcast, spoke about the significant impact of the bear market, stating that \u201cthe entire market is reeling.\u201d He <a href=\"https:\/\/www.forbes.com\/sites\/cbovaird\/2022\/05\/11\/full-irrational-panicsolana-drops-to-lowest-since-august-amid-crypto-plunge\/?sh=280dfff53fd9\">said<\/a>,<\/p>\n<blockquote><p>\u201cI think that markets are in a full irrational panic. The pendulum has swung to extreme fear, as it always does. This causes people to sell assets at or near the bottom.\u201d<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>On 12 May, BTC dropped to its lowest valuation of $26,350 since December 2020. There is an uncanny resemblance between this crash with the mid-season crypto breakdown in May-June 2021. In both crashes, the price of BTC dropped below the all-important support level of $30,000. Back in June 2021, it reversed back from $29,800 but<a href=\"https:\/\/ambcrypto.com\/btc-drops-to-lowest-point-since-dec-2020-expect-this-from-latest-crash\/\">Continue reading <span class=\"sr-only\">&#8220;Bitcoin reaches lowest point since Dec 2020; here&#8217;s what to expect&#8221;<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":234086,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[35,360,66,3,4,20],"tags":[],"class_list":["post-234085","post","type-post","status-publish","format-standard","has-post-thumbnail","category-bitcoin-news","category-btc-trading-view","category-new-news","category-news","category-social","category-trading-view"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Bitcoin reaches lowest point since Dec 2020; here&#039;s what to expect - AMBCrypto<\/title>\n<meta name=\"description\" content=\"On 12 May, BTC dropped to its lowest valuation of $26,350 since December 2020. 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