A considerable degree of demand appears to have been built at the $20,000 level for Bitcoin after the drop last month, creating a floor. 

## Assessment of the Bitcoin drop

On Monday, blockchain research startup Glassnode released its latest "The Week On-Chain" [report](https://insights.glassnode.com/the-week-onchain-week-31-2022/), which assessed [Bitcoin's drop](/news/article/norway-bitcoin-mining) during the previous week. 

Analysts cited sideways growth in transactional demand, active Bitcoin drop addresses continuing in "a clearly defined downward trend”, and decreased network fees as reasons to dampen investors' enthusiasm about the 15% increase in BTC price over the last week. 

[According to CoinGecko](https://www.coingecko.com/en/coins/bitcoin), Bitcoin has been down 2% in the previous 24 hours, trading below $23,000 to $22,899. 

The features of a bear market seem prevalent, such as a decrease in on-chain activity and a shift away from speculative investors and toward long-term holders.

According to Glassnode, a drop in network activity might indicate a lack of fresh demand from speculative traders over long-term holders and investors who strongly believe in the network's technology. 

The present network demand pattern and the one developed in the 2018-2019 period were comparable, according to the research. Like the last cycle, network demand dwindled following the all-time high in BTC price in April 2021. Demand increased noticeably in the months running up to the following November when prices reached a new high. 

However, demand has been declining since last November, leading to a bitcoin drop, with a significant dip during the mass sell-off in May:

Network costs have entered "bear market territory" due to a lack of demand from anybody other than hardcore Bitcoin fans. Daily network fees hit 200 BTC when prices reached an all-time high last April. Over the last week, daily fees totaled only 13.4 BTC. 

If fee rates climb significantly, demand is increasing, which will assist in supporting future "positive structural shifts" in Bitcoin network activity:

## Optimism amid the Bitcoin drop

On a brighter note, capacity in Bitcoin Lightning Network (LN) public channels continues to reach new all-time highs. Despite the current weak market, total LN public capacity has reached 4,405 BTC, a 19% growth over the previous two months.



















Has Bitcoin's drop reached its floor?

As Q2 2022 concluded, many companies shared their data for cryptocurrency losses.

Major United States crypto companies like Coinbase and Galaxy Digital have reviewed their activities. The data they shared further substantiates that we are experiencing a [crypto winter.](o/news/article/crypto-market-crashing)

As per Coinbase, the dip for the previous quarter reached more than $1.1bn. Galaxy Digital's crypto depletion for the same period was $554 million.

## 'Fast and Furious' Cryptocurrency Losses for Coinbase

One of the largest crypto exchanges, Coinbase was listed by the NASDAQ in 2021. It has shared the data for its crypto losses of more than $1.1 billion in the second quarter of 2022. Since its stock exchange listing, this has been the worst quarter for the firm.

The company announced the deficit via a [shareholder letter](https://s27.q4cdn.com/397450999/files/doc_financials/2022/q2/Q2-2022-Shareholder-Letter.pdf) on August 9, 2022. The letter mentioned that consumer behaviour amid this ‘fast and furious’ crypto winter is the same as previous ones. 

Moreover, it revealed that the company is focusing more on innovation in this downward market as it will help the company in the next cycle. 

Coinbase shared that its revenue was $802.6 million for Q2. The firm experienced a 45.1% dip in comparison to Q1. Also, if you compare this revenue to Q2 2021, there is a decline of around 153.1%.

The firm is looking to join forces with [Blackrock](/news/article/blackrock-crypto). Both firms agreed to the partnership to support Bitcoin trading. The alliance announcement has been embraced positively in the stock exchange as it saw a surge of more than 15%. Analysts believe that, with Coinbase encountering losses and probes from SEC, a partnership with Blackrock might help the firm financially.

## Galaxy Digital Q2 Crypto Losses Reached $554.7m

Another digital assets giant, Galaxy Digital, shared its report for the second quarter of 2022.

As per the data, the deficit piled up to $554.7 million in Q2. In Q2 of last year, the company's total debt was only around $182.9 million.

The cryptocurrency losses for the major firms suggest a further aggravating crypto winter.


Cryptocurrency Losses for Major US 

After the algorithmic stablecoin, Terra lost its peg to the US dollar, this was accompanied by a bank run that rendered $40 billion in tokens almost worthless. Crypto collateral valuable enough to cover loans one day became highly undervalued or illiquid, casting uncertainty on the fortunes of seemingly invincible hedge funds and other high-profile lenders.

## What led to the crypto market crashing?

The seeds that spawned the crypto market crashing — greed, excessive leverage, and a delusional belief in price going up — are not new. They were there when almost every other asset bubble burst. However, crypto is a new and highly unregulated market, with boundaries blurred and failsafe weakened by the notion that everyone engaged can get wealthy together. 
Leveraged trades rely on borrowing, increasing the risks and profits. There are an estimated 1,900 crypto hedge funds, and the majority appear to utilize leverage to trade at bigger volumes with collateral that may not meet requirements of centralized financial regulation.

## Analysis of crypto market crashing

In a December study, the Bank for International Settlements (BIS) highlighted the implications of decentralised financing's high leverage. The BIS noted that when debt decreases due to investment losses or depreciating collateral, investors are obliged to liquidate assets, exerting further downward pressure on prices. Crypto has had multiple large dips in its history, dubbed "crypto winters" by the community and a bear market by the rest of the financial industry. Still, the sector's expansion and increased acceptance from Main Street to Wall Street means more is at stake today.

Its expansion has further amplified the impact of this year's turbulence: After the expiration of the crypto market crashing in 2020, the industry peaked at $3 trillion in total assets last November before plummeting to less than $1 trillion. 

If [Terra](https://www.cnbc.com/2022/05/30/terra-2point0-new-luna-cryptocurrency-is-already-crashing.html) led to this crypto market crashing and was the equivalent to Bear Stearns in the 2008 financial crisis, many believe that the Lehman Brothers moment is just around the corner. The failure of lenders to make margin calls was an early warning flag in the 2008 financial crisis, and crypto has experienced its counterpart this month: Celsius Network, Babel Finance, and Three Arrows Capital all disclosed severe issues when digital-asset values fell, causing a liquidity crunch that ultimately comes from the industry's interdependence.

Consumer confidence and perception of bad actors had a role in the crypto market crashing and the financial crisis, but what is occurring now is money flowing out of deployed, working systems due to over-leverage and irresponsible risk-taking." 

Leverage allows investors to generate more returns with less investment during bull markets, but when the market falls, such positions swiftly unravel. Also, in crypto, such bets frequently include more than one type of asset, increasing the likelihood of a crypto market meltdown.

## How Celsius contributed to the crypto market crashing

Over the last several weeks, a crypto news site has received many complaints from Celsius users. Some are concerned about losing their houses after being liquidated on millions of dollars of loans secured by the company's cratering CEL token. Celsius has been leveraging client assets to pay out 17 % APY utilising a variety of DeFi protocols, including Terra's Anchor and Ethereum mainstays Lido and Curve. 

Given the danger of accepting crypto loans, particularly those via decentralised finance applications that do not use intermediaries like banks, sometimes ask borrowers to put up more collateral than the loan is worth.

[Celsius](/news/article/celsius-bankruptcy-protection) began lending to human traders two years ago, managing risk by requiring collateral from these borrowers. Celsius leased financial assets to players that can profit from arbitrage, market making, or shorting specific equities or digital assets." 

However, as market values fell, it led to the crypto market crashing. After Celsius started lending in the DeFi space, exposing borrowers to risky market fluctuations, whereas lending to a creditworthy institutional borrower is entirely different. The danger is not the same as relying on cryptocurrency market prices to remain stable or increase."

Loans that were previously over collateralised are now in danger of liquidation. This process is automated in DeFi, worsened by the increase of traders and bots looking for methods to make quick profits. 

## Views of Finance Professor on crypto market crashing

According to a finance professor, John Griffin at the University of Texas at Austin, the spike in cryptocurrency prices last year was fueled by leveraged speculation, possibly even more so since the previous crypto market crashing. A low-interest-rate environment and ultra-accommodative monetary policy helped set the scene.

With interest rates increasing and a lack of trust in leveraged platforms, the deleveraging cycle had the impact of unwinding these prices far faster than they grew, the finance professor added. Though traditional markets frequently rely on a slow and constant level of leverage to expand, the effect appears to magnify in crypto due to the concentration of speculation in the industry.

Regulators are watching the industry, looking for indications of instability that might jeopardise their fledgling ambitions to regulate cryptocurrency. Even laws proposed in the spring have changed in the aftermath of Terra's collapse, with some countries considering measures to mitigate the systemic impact of failing stablecoin systems. 

He added that while there may be occasional bull rallies, he does not see the cycle reversing soon. He said that when the Nasdaq bubble burst, analysis indicated that wise investors were among the first to exit and sell when prices fell, whereas retail investors bought up and lost money. 

Digital assets were the domain of affluent retail investors and a small handful of crypto-focused firms. Now, the industry has developed a greater appeal to pump-and-dump investors and hedge fund giants, prompting authorities to routinely intervene with comments warning consumers of the risks of trading such products.

After witnessing the crypto market crashing many times and broad acceptance, most investors now see crypto as another asset class and treat it like the rest of their portfolio. As a result, cryptocurrency values correlate with other asset classes, such as technology stocks. 

The crypto market's experimental and speculative characteristic exacerbated the meltdown, knocking out small retail traders who put their life savings into unregulated projects like Terra which have no track record. Furthermore, the industry is overhyped by new generations of crypto cult members using social platforms like Twitter and Reddit. Exchanges have also contributed, with FTX, Binance, and Crypto.com investing in marketing and high-profile sponsorships.




Crypto market crashing due to deleveraging

The Bitcoin dip has been going on for a while now, and some people wonder if it is coming to an end. While we cannot be certain, there are a few things that could indicate that the dip might be nearing its end.

## Signs the Bitcoin Dip Might Be Nearing its End

One of the most obvious signs is the recent increase in BTC prices. After months of decline, Bitcoin prices have started to rebound in recent weeks. This could signify that investors are beginning to see value in Bitcoin again and are willing to buy it at higher prices.

Another sign is the increasing number of transactions on the BTC network. Despite the price decline, the number of BTC transactions has continued to grow throughout the dip. This indicates that people are still using BTC and are finding ways to transact despite the lower prices.

The increasing number of Bitcoin-related projects and businesses could also be a sign that the Bitcoin dip is ending. Several projects were postponed during the dip, but there are still a number of companies working on new Bitcoin-related products and services. This suggests that there is still interest in BTC from both businesses and consumers.

What’s more, key indicators suggest that [BTC](/coins/btc) is currently undervalued. For example, the Bitcoin Relative Strength Index (RSI) is at 26, the lowest since 2018. This indicates that Bitcoin is currently oversold. In addition, Bitcoin has fallen past its 200-week moving average of $22,350, another sign that it's a bargain.

Of course, predicting where the bottom is for Bitcoin is impossible. Values fluctuate wildly, driven by speculation, hype, and the whims of the broader economy. However, the signs mentioned above suggest a good chance that the worst of the Bitcoin dip is over.

While some investors see this as a buying opportunity, others are worried that the market is in for more pain.

## Shark Tank's Kevin O'Leary Buying the Dip

TV personality and investor Kevin O'Leary said he's [taking advantage of the recent dip](https://markets.businessinsider.com/news/currencies/kevin-oleary-shark-tank-crypto-investing-strategy-portfolio-bear-market-2022-6) in prices to add to his positions in Bitcoin and Ether.

"I'm a buyer of dips; that's my general philosophy," O'Leary said on CNBC's Halftime Report. "I think we're in a long-term bull market for Bitcoin, and I don't try to time the short-term gyrations."

O'Leary, who has been investing in cryptocurrencies for about two years, said he sees Bitcoin as a store of value similar to gold. He also believes that Ethereum, the second-largest digital currency by market value, has more upside potential than BTC because it's being used more by corporations and developers.

"In the short run, anything can happen," O'Leary said. "But if you're a believer like I am in the long-term story...then you buy the dip."

## Factors to Consider

- First is your risk tolerance. What level of risk exposure are you willing to take on? If you are risk averse, then buying the dip may not be for you.
- Second is your time frame. Are you investing long-term, or are you looking to make a quick profit?
- Thirdly, consider your investment goals. Know what you hope to achieve by investing in Bitcoin.
- The other important thing to consider is your knowledge of Bitcoin and cryptocurrencies. Do you fully understand how BTC works and the risks involved?
- The fifth factor is the price. Is the current price attractive compared to where you think bitcoin will be in the future?

## Conclusion

So, is now the time to buy? Only you know the answer to that.

Of course, there's no guarantee that BTC prices will rebound or that the current dip is a good opportunity to buy.

However, if you have faith in the long-term potential of Bitcoin, then buying during a dip can help you towards better returns.


Is the Bitcoin Dip Over?

It's been a rough few days in the cryptocurrency world, with [BTC falling below $20,000](https://www.ibtimes.com/crypto-july-12-bitcoin-drops-below-20000-market-turns-red-3570356) and the market turning red.

After a 2.89 percent dip in BTC in the last 24 hours, the cryptocurrency market opened on a gloomy note on Tuesday. At 12:17 a.m. Eastern Time, one BTC stood at $19,958, according to data from CoinMarketCap (CMC).

## Ethereum falls 5.6%: Predicts a return of $2789.81 by the end of July

The second-largest cryptocurrency, Ether (ETH), fell 5.6% the previous day and was trading at $1,088 at 12:17 a.m. Eastern Time (ET). Despite the recent drop, the median estimate tool provided by CMC, in which 32,022 individuals participated, predicts that BTC will recapture $35,143.87 by the end of July. For Ether, the same feature, which received 11,849 votes, predicts a return of $2,789.81 by the end of July.

## BTC Expected to Grow

BTC is expected to grow to $24,648.70 by August 1st, according to WalletInvestor, while DigitalCoinPrice predicts that BTC will trade at $28,089.80 on average in August. According to BitcoinWisdom's annual estimate, BTC will conclude the year in the $27,989 range. Solana (SOL), Dogecoin (DOGE), Near Protocol (NEAR), and Cosmos (COS) were the largest losers today (ATOM). There was a 4.99% drop in these tokens, followed by 5.42 percent, 4.46 percent, and 5.01 percent.
 
These coins cost $33.77, $0.6242, $3.28, and $8.27 at 12:33 a.m. ET. Polygon (MATIC) went bullish with a 4% price increase in the same period, while Uniswap (UNI) suffered the most with a decline of over 9%. At 12:35 a.m., these tokens were worth $5.4 and $0.5816, respectively.

The Bitcoin crash continues, with the cryptocurrency falling below $20,000. Ethereum is also down, although not as much as BTC. The market is overall red, with many coins losing value. BTC is expected to grow in the future, but it remains to be seen how long the current Bitcoin crash will last.

For more  crypto coin and token news go to [Latest Moni](/news).


Bitcoin crash continues below $20,000

Altcoins on the Rise to be showing signs of recovery, with Bitcoin up again by 7%. Its weekly gains have been around 13%. If the trend persists, it might make the highest gains in the last nine months, i.e., since October 2021.

This will be welcome news for cryptocurrency investors who have been waiting for the green shoots of recovery in the markets.

As of 8 July 2022, the price of Bitcoin is close to $22K ($21,780.04) as per [CoinMarketCap](https://coinmarketcap.com/currencies/bitcoin/). Moreover, the global cryptocurrency market cap today is around $960.69 billion. There has been an overall 5% surge in the global market cap.

In addition, the recent reassurance by the US Federal Reserve regarding recession has positively impacted both traditional and crypto markets. Consumer confidence has increased, and BTC's fear and greed index has increased to about 20 points.

## Altcoins on the Rise

Altcoins are also making significant gains as the overall crypto market is turning green. Ether, the second-largest cryptocurrency by market cap, has seen a 5% surge. However, the main reason behind its rise is the successful [Ethereum Sepolia Testnet merger](/news/article/ethereum-testnet-success).

Moreover, Litecoin (LTC) is also seeing a positive rally as its price has surged to $51.90 with an over 3% increase. The Binance Coin has been up by 7% in the last week and is trading at around $237. Meanwhile, Dogecoin and Shiba Inu also made notable gains. 

## Bitcoin Up Again

With Bitcoin  increasing in value again, we must ask, is it the end of the macro downward trend? That's what investors are hoping for.

Nevertheless, crypto analysts suggest that a small surge and the downward trend will likely continue. [@Roman_Trading](https://twitter.com/Roman_Trading/status/1545064421122269184/photo/1) explains that the hike follows similar patterns of the past eight months.

![wasay.webp](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/wasay_c446773d29.webp)
 
Another analyst, @gilbertocrypto1, observes that this Bitcoin surge could be bullish if the price crosses the $23K mark. However, as of now, the overall trend is still downward.



Latest Moni

Bear Market News

Read the latest Bear Market crypto news.

Has Bitcoin's drop reached its floor?

Cryptocurrency Losses for Major US

Crypto market crashing due to deleveraging

Is the Bitcoin Dip Over?

Bitcoin crash continues below $20,000

Crypto Market Turns Green: Bitcoin Up, Altcoins Making Significant Gains Too

Blackrock investing strengthens crypto’s position

Ankr receives significant investment from Binance

How to exchange Monero (XMR) to GBP in the UK