Arcane Research revealed that the crash in America is way bigger than in Europe and Asia. Among the elements that played a vital role in the decline, the lack of demand and the complex situation that the world economy is going through stand out.
A recent report revealed by Arcane Research, a blockchain data research entity, highlights that YTD (Year-To-Date)performance of bitcoin crumbled down from 4.22% to 1 from April to -32.55%.
The report also revealed that during European and Asian trading hours, bitcoin experienced uniform returns since April 1. This event shows that traders and investors currently living in America negatively impacted the performance of the leading digital asset in recent months.
This drop took effect due to various elements. One of them is the opinion that many huge capital investors have about a currency like bitcoin, which, according to them, represents one more risky asset and is only based on the speculations that they give to its cost to make a sale or purchase decision.
A Negative Reaction to FED Procedures
Another element that influenced the recent crack of bitcoin is the selling pressure. This selling pressure is a factor that goes along with risk and is a reaction to the FED’s measures to slow down the economy.
From May 30 to June 3, the S&P 500 index crumbled down to 1.20%, and this year it presents a decline registered at more than 12%. In comparison, bitcoin crashed 37.1% since the beginning of the year and 6.34% since last Monday, May 30; these figures show a steeper drop for the leading digital asset.
The fact that there is a visible lack of consolidation in its demand does not give hope to the Bitcoin price, so it is finding it hard to return to higher peaks in recent months. This situation has created an uncertain scenario among traders who fear this is a bear market.
Also, considering the complex global economic panorama, with extensive inflation worldwide and the probability of a contracting market, the price of the leading asset is still in red, and this position could take it to even lower costs.
Crypto Market Liquidation is a Need
The selloff of the top two cryptocurrencies, Bitcoin and Ether, got triggered by a much more comprehensive crash in stock markets. The decay just got worse with the Crashdown of the TerraUSD.
Brett Harrison, president of FTX US, mentioned that large institutional investors are also involved in the cryptocurrency market crash.
He expressed that there was a much comprehensive decay in risk assets such as stocks but that it also impacts the cost of crypto-assets. This situation takes effect as there is much more institutional money in the market than before.
By: Jenson Nuñez
