The bullish momentum that allowed the Bitcoin to know a 55.7% increase since the beginning of the year 2023 gradually faded as the price of BTC fell by almost 11.4% in the last 30 days.
However, the context seemed relatively favorable to the dominant crypto-asset in the ecosystem after Grayscale’s victory in its lawsuit against the Securities and Exchange Commission (SEC) of UNITED STATES. Unfortunately this northerly momentum seems to have completely run out of steam as the losing streak that began in early September continues to unfold.
The contraction in Bitcoin’s value has led some crypto industry analysts to compare the current state of BTC to the market cycle. pre-bubble dating from the period between 2015 and 2017.
Decreasing Liquidity in BTC as Investor Confidence Fades
At the start of 2023, traders with short positions continuously dominated liquidations in the futures market. The bulls were caught off guard on August 17 when a flash crash led to the liquidation of more than $213.5 million long positions. This is the biggest sell-off in Bitcoin since the collapse of Terra Luna during the month of May 2022.
Since this crash, the market has been plagued by numerous capital outflows from risky assets such as Bitcoin And Ether. Despite the high volume recorded at the beginning of the year 2023 in the financial derivatives market, investors’ risk appetite has declined significantly from the levels of 2021 And 2022with a loss of $6 billion per day on average.
When long positions in BTC are liquidated without buying pressure from trading volume, the price of bitcoin is negatively affected. Bitcoin volume also hit its lowest levels since the early 2021and the volume of transactions on the Ordinals protocol also fell more than 98%. As a reminder, Ordinals is a revolutionary system that allows you to transform each satoshi (i.e. the smallest unit of a Bitcoin) in NFT.
The lack of consistent liquidity and trading volume led to a significant pullback on the Fear & Greed Indexthe latter being a key indicator of investor sentiment, in a downward trend over the past 30 daysmoving from an overall neutral sentiment to a sense of panic.
Even if the vast majority of investors as well as the various institutional players who still have funds positioned in the crypto ecosystem seem convinced that Bitcoin will benefit from a significant rise following the halving in 2024. Nevertheless, traders wishing to benefit from a substantial return on investment over a faster period of time will not hesitate to position themselves on Bitcoin BSC.
Bitcoin BSC: a viable alternative to traditional Bitcoin?
Bitcoin BSC (BTCBSC) is an innovative fusion of the historic value of Bitcoin and the cutting-edge technology of Binance SmartChain (BSC). This by providing a mechanism for environmentally friendly staking which encourages long-term ownership and involvement of the community around the project.
Before continuing, it seems crucial to point out that Bitcoin BSC is a type of token BEP-20 which has been designed to emphasize the principle of staking. The return on the project is spread over 120 years, in line with traditional Bitcoin blocks. Furthermore, it is observed that 69% of all BTCBSC tokens are reserved as part of the rewards aimed at the community.
Like the dominant crypto-asset in the ecosystem in terms of market capitalization, Bitcoin BSC has a total supply of 21 million tokens. In terms of tokenomics, it is possible to see via the white paper of the project that 29% of this offer, or 6,125,000 tokens, is devoted to the pre-sale campaign. Thus, the BTCBSC benefits from a initial market capitalization of $6,063,750.
Furthermore, 2% of the total supply of BTCBSC tokens will be used in such a way as to ensure liquidity on decentralized exchanges like Uniswap from the listing. The rest, either 69% Or 14,455,000 tokens, East allocated to staking rewards, distributed every 10 minutes when adding new blocks.
Investors interested in the growth potential of the Bitcoin BSC can participate in the pre-sale campaign by consulting the official website of the project. You can also join the community at Twitter And Telegram.
This article does not represent investment advice in any way. The information provided here should not be used as the basis for making financial decisions. Investing in cryptocurrency involves risk and can lead to significant losses.