Bitcoin fell sharply on Monday, dropping below $30,000 for the first time since July 2021.
As the crypto market followed Wall Street’s bloodbath, hitting lows of $29,996, more than 40% of Bitcoin supply slipped into unrealized loss. And, if the present outlook is compared to the 2018 bear market, on-chain data from Glassnode suggests that more pain is still possible.
The situation might worsen due to Bitcoin’s short-term correlation with stocks, which means more losses for stocks despite increased interest rates and other macro headwinds that could lead to BTC falling as well.
Bitcoin’s possibilities are worsening, and it may go below the $28,000 mark. The drop, however, represents a “massive buying opportunity,” according to Perianne Boring, CEO and founder of the Chamber of Digital Commerce.
“Everything is down,” Boring said on CNBC’s “Squawk Box” on Tuesday, referring to the rout in stock and bond markets triggered by the Fed’s tightening. She told CNBC’s Andrew Ross Sorkin that the low prices provide a “buy the dip” opportunity.
El Salvador was among the top fall buyers this week, purchasing 500 BTC worth more than $15 million. In terms of where she believes Bitcoin will go in the future, she believes the benchmark cryptocurrency’s fair worth is presently between $48,000 and $180,000, according to valuation models.
Boring also said that people are trading Bitcoin as if it were a traditional asset, regardless of the fact that it is not. Again, the focus has been on BTC’s price, when it should have been on the network value. Bitcoin reached an all-time high of $69,000 in November and is now trading over 54% below that level.
