Bitcoin has been on a long-term sell-off over the past seven months, tagging along with altcoins and DeFi initiatives. The crypto market has lost almost $1.5 trillion in less than a year, making it the largest wealth destruction event in the history of technology. After major coins fell even more, the global cryptocurrency market cap sat at $833 billion on Saturday.
Regulatory anxieties, DeFi clash fears, the crisis in Ukraine, the Fed’s monetary policies, and, most lately, approaching recession fears have all contributed to the weakness of Bitcoin, Ethereum, and other cryptocurrencies.
Furthermore, throughout the current slump, onchain indicators have been pretty unfavorable for BTC, with more investors bailing ship, as evidenced by the increase in exchange inflows last month. Although outflows from exchanges continue to outnumber inflows, the large quantity of coins delivered to exchanges by miners and other investors remains a source of concern.
The exchange inflow metric is a frequently watched statistic in the crypto industry since a decline in the amount of coins entering exchanges can cause a supply shock, driving prices upward with enough purchasing pressure, or vice versa.
Technically, investors have been battling price breaks and closes below the $28,000 and $20,000 support levels, with each breach lowering the chances of a rebound.
