The crypto and equity markets are in decline and, aside from Celsius’s positive news about repaying all their debts and avoiding a large liquidation, there are very few reasons for investors to invest in Bitcoin and other altcoins.
Although sentiment continues to be affected by the collapse of many decentralized finance (DeFi), crypto investment funds, and BTC trading at 60% below its peak continue to weigh on sentiment. However, a few positive tidbits could indicate that the market is poised to enter a consolidation phase.
expect people will shift from a comatose state of fear to the realization that tens of billions of $ in forced spot selling (LFG, 3AC, lenders, miners) were a capitulation/risk transfer rivaled only by the Covid crash https://t.co/vAj7HfTKxf
— light (@lightcrypto), July 7, 2022
Crypto investors HODL
Appinio recently conducted a survey and found that, despite the fall in crypto prices, more than half (55%) crypto investors kept their investments, in spite of the start of the bear markets. Only 8% of them sold their investments after the crypto-asset-market sell-off.
This indicates that crypto investors still have strong convictions in investing. According to the study, 33% of American investors have invested in crypto-assets. Meanwhile, 40% of investors believe that Bitcoin is the best investment opportunity for the next three months.
Resilience is a hallmark of merican investors
Appinio discovered that 65% of respondents retained their investments and are confident in their decisions.
Respondents were asked to identify their top short-term concerns. 66% cited rising inflation, 39% cited the state of the world economy, and 34% cited international conflict.
Callie Cox from eToro in the U.S. says that investors are facing a “perfect storm” of setbacks due to these worries and ongoing uncertainty.
“Despite these factors investors across generations are showing maturity and understanding and not allowing emotions to dictate important money decisions.”
Related: Bitcoin traders anticipate a “generational bottom”, but BTC derivatives data is not in line with this expectation
Bitcoin is now in oversold territory
A number of metrics on the blockchain suggest that crypto investors are resilient and the market is poised for consolidation.
According to LookIntoBitcoin, the MVRV Z score, which combines Bitcoin’s market value, realized price, and z-score has proven to be a reliable tool for identifying when BTC is “extremely under or overvalued relative to its fair worth”.
Bitcoin MVRV Z Score. Source: LookIntoBitcoin
The chart shows that periods when the red z score has entered the lower-green band have been good buying opportunities for BTC. Also, these times have shown up in the chart as blue and yellow lines.
LookIntoBitcoin also offers insights into how buying and selling Bitcoin can yield large returns.
Bitcoin Investor Tool. Source: LookIntoBitcoin
The chart’s green-shaded areas represent periods when Bitcoin prices have been historically low. This may be a good time to buy.
Investors should not base their investment decisions on one metric or indicator alone.
com. You should do your research before making any investment or trading decision.