A slew of macro indicators suggest the market is entering the deepest part of this bear cycle, with Bitcoin prices dropping to the mid-$20,000s. The fundamentals have worsened to the point where even long-term holders are suffering big losses.
Bitcoin and digital assets have had another wild week of price swings, losing their opening high of $31,693 and plummeting to a new multi-year low of $25,150. The latest US CPI print of 8.6% was above forecasts, and another 2y-10y US Treasury Bond yield curve inversion occurred in the early hours of Monday, highlighting macro headwinds. As Bitcoin ends with its 10th red candle in 11 weeks, this has sparked a huge rally in the DXY.
The utility of the Bitcoin network continues to decline, with macro indicators such as the RVT entering uncharted bearish territory. Despite steady accumulation in both Shrimps (1BTC) and Whales (> 10k BTC), price support is still a long way off. Despite the fact that numerous macro valuation indices continue to signal oversold conditions, Bitcoin remains connected with traditional markets, and prices have suffered as a result.
