Elon Musk and Dogecoin co-founder Billy Markus agree that things will get worse for Bitcoin. Twitter has been following the last couple’s talks about the cryptocurrency market for a long time today.
‘Worse’ isn’t far away, according to Dogecoin phenom
DOGE founder Billy Markus spoke on Twitter today about the latest Bitcoin drop. Saying, “Things can always get worse,” the crypto phenomenon did not neglect to add a thumb emoji at the end of this comment. This statement soon saw a similarly-toned comment from Elon Musk. There were some who found Markus’ tweet motivating, as it implied that rough times are normal.
Are Elon Musk and Markus right? What happened yesterday?
Bitcoin’s performance has been sluggish recently as it has lost momentum over the past few weeks. BTC’s seven-day chart has been painted red as its value has dropped more than 7% at one point. Recently, the BTC price touched a three-month low. This was followed by a spike in BTC’s hourly downside sentiment spike. As a result, a clear indicator for the bear market emerged.
The reason for the decrease was the Fed’s 75 basis point rate hike, which came in line with analysts’ forecasts. After the last-minute statements you follow from Kriptokoin.com, Bitcoin fell below $ 19,000 in a short time. The Fed’s rate decision was more effective as it coincided with the escalation of the European conflict. Following this information, the BTC price hit a recent low at $18,293. It is currently trading around $18,900 after hitting $19,220 earlier today.
In a post citing the Fed’s report, Chinese crypto journalist and blogger Colin Wu noted that “inflation remains high, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures.”
However, the good news for the cryptocurrency market is that several indicators and on-chain metrics point to the possibility of a trend reversal soon.
better days to come
On the sunny side, data provided by Santiment reveals that the social dominance of BTC is increasing. This is generally a positive indicator. Also, BTC’s MVRV rate has dropped, indicating a possible market bottom.
Another metric is the amount of Bitcoin coming out of exchanges. This ratio has recently recorded an uptick after a continued decline. In general, we can interpret it as a bullish signal indicating a price increase in the coming days. However, it is not possible to know exactly when this will happen. Mike Novogratz, head of the Galaxy Digital fund and former Goldman Sachs fund manager, stated that Bitcoin will finally start to rise once the Fed pulls policy out of the hawkish and returns to quantitative easing.