Bitcoin: 50% off sale! 🏷️
Bitcoin dropped to lows of 50% from its all-time high Tuesday—with analysts arguing that its path back is "unclear" amid macro headwinds.
Bitcoin faces an “unclear” path to recovery as it dropped to 50% of its all-time high Tuesday morning, analysts told Decrypt.
While some noted that its latest tumble the result of “several macro shocks” on an overleveraged market, those macro headwinds are overpowering historically reliable buy signals. Analysts pointed to a deep negative Sharpe ratio, along with a contraction in stablecoin supply that “often reflects liquidity withdrawal,” as indicators that have previously marked cycle bottoms.
But others dissented, arguing that these indicators don’t illustrate a pattern because there simply aren’t enough historical occurrences to draw reliable conclusions from them. Certainly, sentiment among traders is in the doldrums—on prediction market Myriad, owned by Decrypt’s parent company Dastan, users see a greater than 70% chance that Bitcoin dips to $55,000 rather than recovering to $84,000, up double digits in the past day.