Investors must ‘hunker down to survive the bloodbath,’ says Binance CEO
Bitcoin’s supply in loss has just reached a two-year high
Changpeng Zhao, the CEO of Binance, has warned investors to “hunker down and make sure they can last” as the crypto crisis turns into what he describes as a “bloodbath”.
The prices of the leading cryptos continued to fall on Wednesday 15 June 2022, with Bitcoin (BTC), the ‘digital gold’, floating around the $20,000 level while, according to Glassnode data, the supply in loss on a seven-day Moving Average (MA) just reached a two-year high of BTC 8.5m. “Supply in loss” is a measure of how many coins were purchased for a higher price than their current value.
And the situation could get even worse, with a Federal Reserve meeting ending today, to be followed by a press conference which could see the Fed taking aggressive action on interest rates in a bid to stem inflation.
BTC could reach a $14k low
According to analysts, a hawkish decision by the Federal Open Market Committee (FOMC) today could trigger another sell-off wave, bringing the price of BTC to around a $14k low.
“Bitcoin traders better be buckled up heading into the FOMC decision. Bitcoin is still holding the $20,000 level and if Wall Street gets a very hawkish decision and press conference, Treasury yields and the dollar could surge once again, and that would test the line in the sand many crypto traders have drawn,” said Ed Moya, senior market analyst at Oanda.
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“If Bitcoin breaks below the $20,000 level, support might not emerge until the $17,000 level. Another crypto plunge might not see major support until the 2019 summer high around the $14,000 level,” he added.
However, a popular trader known as Smart Contracter argued on Twitter that “BTC and ETH are both at their weekly respective 200-week Moving Averages, bottom is very, very close IMO.’
There “may be marginal new lows on lower timeframes,” said Smart Contacter, “but this is the spot to start accumulating.”