Mercados al día is an exclusive summary of the news that moves the bitcoiner economy. It is sent in advance by email to a list of subscribers and then published every Monday in CriptoNoticias. If you want to have the information in advance, subscribe to the list here.
The bitcoin correction that began after its all-time high in mid-November 2021 has sharply intensified in the last seven days. The price of bitcoin (BTC) registered a 25% decline in that week, marked by the announcement of inflation in the US for the month of May, of 8.6% compared to May 2021, as reported by CriptoNoticias .
Although the announcement was made this Friday the 10th, the expectations of an inflation similar to that registered in April, of 8.3%, contributed to the bearish sentiment during the week. The inflation rate higher than expected by the market, accentuated the decline in the price of shares, as well as the prices of bitcoin and the main cryptocurrencies.
In this way, the rise in prices in the United States continues, driven by increases in food and energy, which were 10.1% and 34.6% in the last 12 months, respectively. Gasoline increased 48.7% and diesel doubled in price, increasing 106.7%. This latest figure is the highest historically since the US Bureau of Labor Statistics (BLS) began publishing Consumer Price Indices in 1921, more than a century ago.
The price drop in this last week reversed the positive momentum of the previous week, which has led to the vicinity of a new annual low, while the Nasdaq index shows a drop of 6.27% in the week, as can be seen in the graph. At the time of writing this article, the price of bitcoin is 23,570 dollars.
2021-2022 investors are at a loss
The fact that bitcoin has not been able to overcome the resistance of 31,700 is a negative sign according to the specialists’ view. The current low is below the bottom reached on May 27. According to the latest report from the analytical firm Glassnode, commented by CriptoNoticias, long-term investors who joined the BTC market in 2021 and 2022 currently assume 62% of unrealized losses. This term is used to refer to the traders whose portfolios are in losses, but these have not materialized because they have not sold their funds.
The year bitcoin almost fell to zero
This June 11, 2022, eleven years have passed since the first great bitcoin rally, when it registered a price increase of 3,400% in four months. The strong increase gave way to a sharp drop, which represented the first major bitcoin bubble, which was commented on by CriptoNoticias this Saturday.
From a price of just $0.3 in January 2011, the strength of demand propelled it to the milestone of $1 in February. After a pullback, the price rallied again to reach $35 on June 11 of that year.
Featured chart of the week
In relation to investors holding losing portfolios, discussed above, there is another statistic that tracks the percentage of the bitcoin supply that is losing. In the following graph, it is reflected on the curve of the price of bitcoin, the percentage of the circulating bitcoin that is in loss. Colors are used ranging from orange (0% of supply at a loss) at all-time highs and bull rallies, to dark blue (40% of supply at a loss) at down times.
Historically, times when supply reaches 40% in down times mark a declining trend that culminates in a floor in the price of bitcoin.
Bitcoin at $500,000 in a decade, analyst suggests
A series of data compiled by Will Clemente, an analyst at Blockware Solutions, offers an adoption scenario that would shoot up the price of bitcoin in the following years. In his report, commented by CriptoNoticias, Clemente studies the different adoption curves of the Internet, cell phones, cars and social networks, to derive a bitcoin adoption curve. By the early 2030s, Clemente anticipates bitcoin reaching a price of $500,000.
3 out of 10 mega-millionaires invest in bitcoin
A survey carried out by Forbes among 65 of the richest people in the world, and commented by CriptoNoticias, revealed that twenty of them, 30%, have some form of investment in bitcoin or other cryptocurrencies. 18% of this select group revealed to Forbes that they have bitcoin investments that represent at least 1% of their portfolios. There are particular cases in this sample of wealthy people. Sam Bankman-Fried, the co-founder and CEO of the FTX exchange, is one of the few who acknowledges that the majority of his fortune is invested in bitcoin and other cryptocurrencies.
The Fed highlights the role of bitcoin as a store of value
In an involuntary and even candid gesture, the St. Louis Federal Reserve wanted to highlight the volatility of bitcoin, through a graph of the price of eggs expressed in BTC. It did not have the speed and acuity of the bitcoiner community, which took care to highlight on the same graph, but with a more extended time scale, that the price of bitcoin followed a long-term growing path, as published by CriptoNoticias last Tuesday the 7th.