After the collapse of the cryptocurrency exchange FTX, Bitcoin has struggled to remain profitable as well as to maintain its trading price.
Consider that the company attempted to file for Chapter 11 bankruptcy in a U.S. county court in November 2022, and that it quickly went out of business.
This regrettable outcome had a huge impact on bitcoin, the key cryptocurrency market driver, and it ultimately caused it to depart 2022 with a valuation that was substantially lower than it had been in 2021.
The first digital coin had an average worth of $47,500 in 2021, according to BTC data aggregator Statmuse, but it ended the year with a median value of $28,171, shedding 64.3% of its valuation for the year.
For BTC holders, On-Chain Metrics Bring More Disappointing News
A cursory examination of several technical indications for Bitcoin shows that the network, along with investors and holders, are now losing money
and face the possibility of more losses.
An analyst with CryptoQuant named Gigisulivan came to the conclusion that BTC might go even deeper during current bear market, all the way down to $16,700 by taking into account the Stock to Flow Reversion of the digital currency.
When the Consumer Price Index (CPI) data is issued next week, the expert who expects Bitcoin will trade in the $20,000–$22,000 area remarked, “Just a thought, considering 2023 may be worse than 2022 once we know what type of recession are we having.”
Another CryptoQuant expert named Yonsei dent focused on the Support Adjusted Dormancy indicator for Bitcoin and discovered that long-term investors are diversifying and increasing their holdings, which suggests that skepticism regarding the asset is growing.
Additionally, it has been discovered that since the FTX crash, Bitcoin’s Network Realized Profit/Loss Ratio (NPL) has failed to increase to a positive number.
The digital asset’s current NPL, according to Santiment, is -9.47 million. A network’s inability to generate any sort of profit can be determined by its negative NPL.
How Bitcoin Is Performing These Days
According to data from Coingecko, the top cryptocurrency by market capitalization is now trading at $16,948.
BTC’s value increased by 2.5% during the past week, but it is still far from the $41,154 average it reached in January of 2022.
Analysts urge holders to prepare for a probable decrease that may occur during the next several days given the existing circumstances.
