- Shortly after the rate decision, Bitcoin rallied roughly 14% from its lows around $20,000 to a daily high of $23,000.
- Bitcoin’s daily circulation hit 497,000 on June 15, the highest since 2017.
Cryptocurrencies, which had been battered by a selloff, rebounded on Thursday alongside risk-on assets as the Federal Reserve raised interest rates. Even though the Fed moved ahead with a hike of 75 bps, the highest rate hike since 1994, global markets seemed to be taking a breather after Jerome Powell provided guidance on monetary policy, easing uncertainty in the market to a certain extent.
Shortly after the rate decision, Bitcoin rallied roughly 14% from its lows around $20,000 to a daily high of $23,000. At the time of writing, the king coin was changing hands at $21,500, up by nearly 7% from the local bottom.
According to data from Glassnode Studio, BTC worth $250 million were moved out of exchanges on June 15. A net outflow volume indicates that BTC investors are now slowly beginning to bottom fish. As these investors want to hold the tokens for longer time periods, they are moving their holdings out of exchanges for safer storage.
The key level of $20,000, which acted as a support yesterday, is also the yearly high of 2017, which is why market participants are expecting a reversal from here. As a result of this, on-chain activity for BTC surged massively yesterday. Data from Santiment revealed that Bitcoin’s daily circulation hit 497,000 on June 15. This is the largest amount of unique tokens moving since 2017.
As it stands, Bitcoin transactions are happening in waves of realized losses. This is normal in a bearish market where the asset makes lower highs and lower lows. In this case, investors can only seek to get out by booking a loss as low as possible.
According to Santiment data, this past week’s realized losses have been the highest since 2009. It is true that capitulation of this magnitude may make way for a trend change but investors should not act in haste.
Due to human nature, market participants are quicker to book profits but they tend to hold losses for longer. This is why bottom formation takes long and price tops end soon. Therefore, BTC investors should act with patience and make their investments in partial quantities.