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- Bitcoin prices are on a correction path
- The disparity between address growth and market expectations
- BTC investors offload in the past week
Is the Bitcoin price on a correction path and the market in a state of flux? Brian Kelly, the founder, and CEO of digital currency investment firm BKCM LLC feels that the market is mispricing Bitcoin, and when this happens it is a sign that the token has hit the bottom.
Kelly administers the BKCM Digital Asset Fund and the REX BKCM Blockchain ETF (NYSE: BKC) and he also authored “The Bitcoin Big Bang – How Alternative Currencies Are About to Change the World.” In an exclusive interview with CNBC, he outlined two factors that are synonymous with Bitcoin growth- it’s all about network effect and address growth. However, he underlines the disparity of how fast the addresses are growing against market expectations.
Cryptocurrency situation fluid
Kelly added that this kind of disparity was never seen since March 2020. The Address growth has flattened and the vagaries of the market will lead to a decline of 20% in address growth. Kelly said that the situation today is much akin to the situation of March 2020 when Bitcoin which was trading at $3,500 surged to $60,000. Today bitcoin is trying to bottom.
Kelly added that the cryptocurrency story has not changed and we are getting inflationary hedge and some level of regulations. Both according to Kelly bare very positive things and cryptocurrency is here to stay.
Investors offload bitcoin past week
The past week has seen investors off-load bitcoin according to on-chain data. BTC is in the red having tanked by 2.5% over the previous 24 hours and was trading around $35,987 as of 21:00 UTC (4 p.m. ET). BTC values stayed: $35,754-$37,833 in the past 24 hours. Ether daily trading volumes have steadily outpaced BTC, trading around $2,549 as of 21:00 UTC (4 p.m. ET). However, ETH lost 3.2% over the previous 24 hours and stayed within $2,532-$2,734 in the last 24 hours.
The world’s biggest cryptocurrency, the Bitcoin market cap was below the 10-hour moving average. The gap between the 10 hours moving average and 50 hours moving average are narrowing indicating a bearish trend. BTC price fell from $37,833 at 01:00 UTC to $35,816 by 17:15 UTC constituting a 5.3% tumble.
Oversold BTC conditions
For the first time in 2021 less than 35,000 transfers were made from exchanges in a day. The figure for May 30 was 33,393 daily transfers, according to the data aggregator Glass node.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
