The “digital gold” is changing hands at $27.5k at the moment of writing, briefly testing the $25k support level. Over the past eight sessions, Bitcoin lost $13k, a third of its value. And the long-time holders continue to capitulate, selling much lower than their purchase price. According to the Glassnode data, we are currently witnessing the largest LTH capitulation in Bitcoin history.
Some experts believe that Bitcoin’s spectacular fall isn’t over yet. The pseudonymous crypto trader Capo shared to his 299k followers on Twitter that they await BTC to land somewhere between $21k and $23k. The analyst also believes Bitcoin to recover to mid-40s after the crash but doesn’t expect new highs until mid or late 2024.
The broad crypto market crash was caused first by a 0.5% rate hike from the US Federal Reserve on May 4. Then, the collapse of TerraUSD (UST) stablecoin added pressure to the Bitcoin as Luna Foundation Guard started emptying its BTC reserves to save UST falling peg.