The post Bitcoin (BTC) Surges After Plunge, Facing Uncertain Recovery appeared on BitcoinEthereumNews.com.

Felix Pinkston Aug 14, 2024 01:35 Bitcoin (BTC) sees a sharp 28% rise after hitting $49,000, amidst market volatility and economic concerns, according to Bitfinex Alpha. Bitcoin (BTC) has experienced a significant rebound, surging nearly 28% from its recent low of $49,000, which marked the lowest point since February. This recovery brings BTC back above $60,000 after a substantial sell-off in August that saw the cryptocurrency drop by 33.32% from its all-time high of $73,666, according to Bitfinex Alpha. Market Indicators and On-Chain Data Key market indicators paint a grim picture. The Mayer Multiple has fallen to 0.88, its lowest level since the FTX collapse in November 2022. This suggests that Bitcoin is trading significantly below its historical trends, highlighting a period of low demand. On-chain data further underscores the severity of the recent sell-off. The short-term holder (STH) cost basis stands at $64,860, while Bitcoin’s spot price is nearing one standard deviation below this level. Such an event has occurred only 7.1% of the time in Bitcoin’s trading history, indicating extreme market conditions. The short-term holder Market Value to Realized Value (STH MVRV) ratio, which compares the current market price to the purchase price for newer investors, shows that this group is holding the largest unrealized losses since the bear market low of 2022. Overall, these metrics highlight deep bearish sentiment and significant stress among short-term investors, conditions often seen at local market bottoms. U.S. Economic Outlook Meanwhile, the U.S. economy shows mixed signals. Despite concerns about a potential recession, recent data offers some optimism. Unemployment claims dropped sharply last week, and wholesale inventories rose steadily, providing a robust foundation for economic growth. Household debt has seen a slight increase, but the stability in delinquency rates suggests that consumers are still managing their financial obligations well. However, the slowdown…

---

Filed under: News - @ August 15, 2024 1:20 pm