Golsnod CEO: Bitcoin could face a serious downturn

The founders of the analytical company Glassnode warned bitcoin traders that existing economic factors could cause a serious decline in the digital currency. Investors are still withdrawing bitcoins from centralized exchanges.

According to the Daily Hoodel, Ian Happel and Ian Aleman, co-founders of Golsnood, said in the company’s latest bulletin that Bitcoin’s correlation with risky assets remains high, indicating that if a downward market trend begins, the US stock market is likely to fall and bitcoin.

They said:

Our analysis also shows that the sensitivity of bitcoin price performance to market risks and the high probability of a downtrend are not due to a lack of confidence; Rather, macroeconomic factors have influenced the trend of this digital currency.

According to the founders of Golsnood, after the announcement of the US Federal Reserve to reduce $ 95 billion a month from its balance sheet to fight inflation, the outlook for economic conditions seems unstable. They also point to the growing risk of Russian attacks on other EU countries.

Golsnood executives said more than $ 100 million had been withdrawn from the digital currency market last week as a result of similar circumstances, and bitcoin had the largest capital outflow.

Happel and Herman added:

Looking at digital currency space statistics, we saw a $ 134 million capital outflow last week, the second-largest weekly outflow in 2022. Solana-based funds recorded $ 3.7 million in capital inflows and Altcoins (funds, based on multiple assets) had $ 5 million in inflows. Meanwhile, $ 131 million in capital has been withdrawn from bitcoin-related products.

Despite the vague picture of the future of macroeconomics, according to Allman, internal data still show that bitcoin has managed to maintain its power. He added that bitcoin investors are withdrawing their assets from exchange offices and the exit rate has reached a historic high. This suggests that bitcoin may have come close to its lowest price.

He said:

The chart of changes in the inventory of digital currency exchanges may be a sign that bitcoin is reaching its price bottom and starting an upward trend in the future. Less supply will reduce the pressure on sales.

Bitcoin entry and exit schedules.
Bitcoin entry and exit schedules.

The publication of CEO Golsnood: Bitcoin may face a major collapse appeared first in Digital Currency.

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