Bitcoin Records the Eighth Week of Losses

For the first time in its existence, Bitcoin (BTC) produced an eighth consecutive week of losses for investors due to dismal macroeconomic mood, inflation fears, systemic risk inside the crypto industry, and a lack of quick catalysts that could drive upside growth.

Prices were at $30,272 late Sunday, up from $28,700 earlier in the week. Bitcoin experienced an intense week of gains in mid-March when prices increased from $41,000 to $46,000. Since then, it has dropped every week, plummeting over 60% from November highs of a little over $69,000.

According to Sentiment, an on-chain analytics tool, bitcoin prices may reach a bottom and rise in the following weeks.

The firm’s Weighed Sentiment tool – which evaluates positive and negative social media comments for an asset – revealed that public Sentiment for bitcoin has approached levels last seen on “Black Thursday,” a term used among crypto circles to refer to bitcoin values plummeting below $4,000 in 2020.

According to the firm, prices are traditionally more likely to rise when the mood is low. According to data, bitcoin prices have climbed three of the last four times the index has reached comparable levels.

Fears of a recession have contributed to a drop in bitcoin prices in recent months. In an April note, Goldman Sachs (GS) analysts warned that the Federal Reserve of the United States’ aggressive actions to contain inflation could lead to a recession. The bank estimates that the chances of an economic contraction — a phase of the business cycle in which the economy declines – are around 35% over the next two years. According to some observers, institutional investors have withdrawn more money from the ecosystem than they have; this indicated a broad bearish mindset that may have contributed to dropping prices.