The global cryptocurrency market cap dropped to $2.07 trillion, a whopping 6% drop in the past 24 hours. Bitcoin fell nearly 5 percent the previous day. Down from a value above $47,000 Thursday to about $45,000 early Friday. While Ethereum, the largest altcoin, witnessed another 4% correction in 24 hours. At the time of going to press, it was trading below $3.3k.
So what comes next? Fear? ROI loss?
Grass is greener than you think
First, talk about the fear factor. The Fear and Greed Index (which analyzes emotions and sentiments from various sources) was at 50. This represented a more neutral sentiment across the board.
Subsequently, holders of Bitcoin and Ethereum appear to be making a profit as both saw transaction spikes at their peaks a few days ago. The insight provided analyzes whether trades are executed while a position is in profit or loss. According to Santiment’s data, there were 3x as many profit trades versus loss trades for the first time since November.
Source: Holiness
To further put this into perspective, or rather to support this, one could also use the insights of IntoTheBlock. Speaking of Bitcoin, 71% of BTC holders made huge profit while 28% witnessed losses. On the other hand, 80% of ETH holders saw profit compared to only 18% who have suffered a loss.
A widely followed crypto strategist charted the trajectories of Bitcoin (BTC) and Ethereum (ETH) in several tweets. He expected a rise to the $51k-$53k for the most prominent cryptocurrency. Indeed, the Luna Foundation Group acquire more BTC would trigger this growth.
The pseudonymous crypto analyst Pentoshi had this to say:
For now should expect an annual open and purple box to act as support.
Potential smol withdrawal as LFG and Do Kwon AFK appear to be from the green button
Looking to continue to 51-53k during the next rally for $BTC pic.twitter.com/uMQhUI5XqB
— Pentoshi 🐧 (@Pentosh1) March 30, 2022
The trader then weighed in on the forecast for ETH in the wake of a recent $600 million hack into Ethereum side-chain Ronin Network. The trader believed that the hack could bode well. The price of the second largest crypto asset by market cap to move forward and push it past the $3,600 level.
†Personally think it is a bullish hack. See as the $ETH sent to FTX. Think 36xx is coming in a few days.
This story is shown in the chart below.
Source: Twitter