Bitcoin, the largest cryptocurrency by market capitalization, is expected to continue its decline. Bitcoin’s long-term holders are also under pressure from the steady decline in its price. There is also a decrease in the Realized Price Indicator, which shows the average purchase price of all the bitcoins in circulation.
Blockchain data provider Glassnode has Told That the current price of bitcoin is about $1,000 less than its actualized price of around $23,430. Strategists at Glassnode said, “The market could be in a recession for a long time. On average, the market is only slightly above its cost basis. Difficulties have also increased for long-term holders of bitcoin.” Market experts are trying to find out which segment of investors is suffering the most due to the ongoing fall in cryptocurrencies. Bitcoin is at an almost 18-month low. Recent buyers of this cryptocurrency are at a loss.
Bitcoin miners are also facing pressure due to some reasons including rising energy costs. This can also have an impact on prices. Crypto lending firm Celsius Network’s Transactions Investors are also angry with the ban. However, the crypto market has been more affected by the inflation reaching record levels in the US. Celsius Network has banned the transfer and withdrawal between accounts due to the bad situation in the market. This is an indication of increasing pressure on this segment.
Celsius Network said in a blog post, “We are taking these necessary steps to strengthen liquidity and business. Along with this, measures are being taken to protect the assets. Customers will continue to get rewards during this time.” At the end of last year, the firm had secured funding of about $750 million. It is one of the largest firms involved in crypto lending. It offers interest to customers depositing its cryptocurrencies and lending cryptocurrencies to earn returns. Scrutiny of the crypto segment has increased especially in many countries including the US. In the last few months, due to the increase in the cases related to fraud in this segment, the regulators have called for tightening of scrutiny. In some countries, work is being done to legislate for the crypto segment.