Bitcoin Is Experiencing an Outflow of Funds

Bitcoin and other cryptocurrencies are seeing a fund outflow. Since then, the value of the almost $3 trillion crypto landscape has been cut in half.

Despite the bear market, Bitcoin has held up well, losing more than half its all-time high of $69,000 in November 2021. The digital asset recovered to $21,758 after touching its second lowest low of $18,649 during the current bear run. Since mid-August, it has remained under the $24,500 consolidation area, as its rally has yet to break past this resistance barrier.

Bitcoin has been the bright star of the crypto sector, but it has not been without controversy. Bitcoin downtrends shortly after reaching an all-time high (ATH) have left numerous Bitcoin investors in a bind.

A Bitcoin heatmap shows a monitored ATH drawdown to January 2015, when Bitcoin hit rock bottom following an 85.15% loss. The downward trend continued in 2018, with Bitcoin falling 83.8% from its all-time high in 2017. A price decline in July 2021 found its bottom at 54.2% of its March 2020 peak.

Meanwhile, the value looks to be climbing again, with this year’s drawdown equaling 72.5% of the $69,000 valuation.

Spot prices were assessed against the cost bases of various market participants. The first is the overall market (MVRV), which analyzes the spot prices and on-chain cost basis of all cryptocurrency investors.

Long-Term Holders (LTH-MVRV) are investors who have held their positions for more than 155 years and have no plans to sell or liquidate them. The final group is Short-Term Holders (STH-MVRV), which consists of investors who buy Bitcoin and hold it for fewer than 155 days on average. Short-term Bitcoin holders are likely to sell their holdings. The crypto market will begin a bullish trend after The Merge update.