Are Crypto Prices Over the Worst of the Crash Now, And Should You Buy The Dip

Volatility in crypto markets has cooled down in the last 24 hours. The global cryptocurrency market capitalization has increased by 1.2%, and it now stands at around $869 billion, according to data from CoinGecko. The market is now consolidating after a notable uptrend yesterday.

Has the crypto market bottomed?

Yesterday, the markets made a notable rally as factors such as rallying stocks and the start of the FTX bankruptcy case eased market fears. The uptrend has slowed, and the prices are now consolidating, raising questions on whether the bear market could finally be over.

Despite this uptrend, cryptocurrency prices are still trading at the low levels created after the collapse of FTX. At the time of writing, Bitcoin was trading at around $16,500, while Ether struggles to hold the $1,200 support level.

Nevertheless, there are several factors at play that could prevent the market from plunging further.

Over 50% of BTC addresses are at a loss

Bitcoin has lost more than 70% since hitting an all-time high. More than 50% of Bitcoin addresses are in loss, which is the first time that this has happened since March 2020, when the outbreak of COVID caused a crash. This means there is less incentive to sell, and the bottom could very well be in.

24.6 million BTC addresses out of the total 47.9 million BTC addresses are currently sitting at prices below their purchase price. On the other hand, around 45% of addresses are still sitting on unrealized gains, while the other addresses are at around break-even prices.

Bitcoin falls further from the S2F target price

As the price of Bitcoin dropped significantly after the FTX implosion, the popular stock-to-flow model has been under strain, and it has deviated from its planned price growth to the extent that has never been seen before.

The model enjoyed popularity until Bitcoin hit an all-time high in November last year. The pseudonymous analyst behind its creation, Plan B, has argued that the deviation caused by FTX collapse was just a “small blip on the long-term radar.”

Institutions are buying Bitcoin

The other factor that shows that the bottom is in and could drive price gains is the increased accumulation by institutional investors. After the FTX collapse, a report by CoinShares revealed that inflows totaled $42 million.

Investors saw the crash as an opportunity to scoop more coins at low prices. Bitcoin saw the largest inflows, hinting that the bottom could be in.

Altcoins to consider buying today

One of the altcoins to consider buying today is Dash 2 Trade. This new Ethereum-based project will give investors access to real-time analytics and social trading data. The Dash 2 Trade presale has already raised more than $6.93 million, and it has also confirmed to list on LBank and BitMart as soon as the presale ends.

Another Ethereum-based project to invest in today is RobotEra (TARO). RobotEra is a metaverse gaming project where players can develop a digital world using NFT-based land and infrastructure. The TARO presale launched recently and has already raised more than $197,000.

To diversify your crypto portfolio into gaming, you should consider investing in the Calvaria presale. Calvaria is a Web3 gaming project seeking to bridge the gap between traditional and blockchain gaming sectors. The RIA presale is nearing the end of stage 4, having raised $1.93 million. The presale has a total of ten stages.


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