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Bitcoin price drops below $24,000, but with accumulation

The bitcoin priceand therefore of Ethereum and other altcoins, has fallen below $24,000. It seems that there are different origins of this fall, some are within the cryptocurrency segment and others are external factors. But, we must see beyond the price of Bitcoin at any given time.

As of this writing, Bitcoin loses over 14% over a 24-hour period and 26% over a 7-day period. ethereum is having a worse time, since loses almost 16% in a 24 hour periods and more than 36% in a period of 7 days.

Bitcoin Price Falls Below $24,000

One of the reasons for this drop is that the fintech protocol celsius has discontinued operations. It seems that he is currently in a rather negative situation. It is quite common for worthless protocols or projects to end up collapsing and dragging down Bitcoin and other cryptocurrencies.

But there are other problems that are causing the sharp drop in Bitcoin. The international economic situation is far from good. The asian markets are selling futures and futures of wall street show a downtrend that carries over from last week.

The United States is in a really bad economic situation. It is of great concern the inflationand everything is waiting for the United States Federal Reserve data on June 15.

Perhaps one of the most interesting data is given by CrediBULL on its Twitter account. Note that it has passed from 11 million bitcoin in HODL to more than 13 million. This means that we are at a point of accumulation, not distribution. But the reality is that it is not being sold, nor has it been sold, on the contrary, there is an accumulation process.

We must keep in mind that the price of Bitcoin is cycles. After hitting all-time highs (also called ATHs) there is usually a period of correction. It happened in 2016, when I hit $20,000 and then went down to $4,000. After hitting the $65,000 figure, we are in another period of price readjustment.

Hash rate and commissions are other good indicators

There are two parameters that show the good health of the Bitcoin network and that show that we must look beyond the price. We must distinguish between the value of the network and the market price, which are not the same. Something that is usually confused.

If we analyze the data from hash rate or Bitcoin mining power, the situation could not be better. In June 2021 we saw a hash rate drop of 60% due to the mining ban in China. As we can see in the graph, it is currently well above what it was before that event. Something that shows the good state of this cryptocurrency.

Another piece of information is the Bitcoin transaction fees. Currently, the The cost per transaction averages around 1.5 dollars. But not only the price of the commissions is very low, the use of the lightning network. More and more users are betting on making transactions in the second layer of Bitcoin for having commissions of practically 0 dollars and being executed instantly.

Maybe it’s a good time to buy a few sats (the most basic unit in which bitcoin is divided). Always with a head, a small amount that we do not need in the short or medium term and that we can afford to “lose”. We refer to losing a fall in price (such as this one) and whose amount has fallen with respect to the money invested.

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