Crypto Daybook Americas: Bitcoin’s Bloodbath — Buy the Dip or Panic?
The post Crypto Daybook Americas: Bitcoin’s Bloodbath — Buy the Dip or Panic? appeared on BitcoinEthereumNews.com.
By James Van Straten (All times ET unless indicated otherwise) Two contradictory philosophies jump to mind when considering bitcoin’s (BTC) price action of late. Do you “buy when there is blood in the streets”? Or perhaps “don’t catch a falling knife.”? Which applies in today’s market, the day after the largest cryptocurrency posted its steepest three-day decline since the collapse of FTX in 2022? The drop left BTC 25% below January’s all-time high, despite the advent of President Donald Trump’s pro-crypto administration. It’s no surprise the largest hack in crypto history has shaken investor sentiment. Add to that the memecoin frenzy, which pulled liquidity out of the broader market. That said, in previous cycles so-called bull-market corrections have sent bitcoin tumbling as much as 35%. Given that BTC hasn’t had a meaningful pullback since the yen carry trade unwind last August, the current situation is almost normal. CoinDesk research showed that bitcoin was trading in an extremely tight range for a meaningful period, and a break in the channel was inevitable. On-chain data tells us that bitcoin recently bounced off its 200-day-moving average or roughly $81,800. While short-term holders are selling — panic sales, perhaps? — at the highest level since August, because they have held BTC for 155 days or less they are usually seen as a signal of some form of capitulation in the market. BlackRock’s IBIT saw record outflows on Wednesday. However, it’s not all bad news. A huge expansion deal was made for Core Scientific (CORZ), while MARA Holdings (MARA) reported strong earnings, with both stocks more than 10% before the open. Meanwhile, NVIDIA (NVDA) topped fourth-quarter estimates to calm investors’ nerves. Stay alert! What to Watch Crypto: Feb. 27: Solana-based L2 Sonic SVM (SONIC) mainnet launch (“Mobius”). March 1: Spot trading on the Arkham Exchange…
Filed under: News - @ February 27, 2025 6:25 pm