The cryptocurrency market hasn’t bottomed out yet, it’s going to dip again!

The capitalization of the global cryptocurrency market fell another 7% during the day to drop below the $1 trillion mark. It now stands at $996.2 billion. However, experts suggest that investors will still suffer.

Will the cryptocurrency market go down further?

According to renowned cryptocurrency analyst Willy Woo, past lows coincide with short-term security holders having a weaker cost base than long-term investors. However, he suggests that the cryptocurrency market is close to that point but not there yet.

He added that in 2015 the crypto market experienced a final capitulation in the same area where 2019 bottomed out.

Meanwhile, Willy Woo suggested that the crypto market hasn’t felt the same drop compared to previous years. He pointed out that the market has only reached 52% “underwater” coins (this term refers to a contract or financial asset that is worth less than its theoretical value.) so far. However, the last recorded lows were 61%, 64% and 57%.

He mentioned that history need not repeat itself in this case. The cover of the available future has not picked up the On-chain so far.

However, Willy Woo hints that this is one of the signals he is watching before spin capital returns. The supply in breakout of the earnings trendline has broken into all previous declines in the crypto market.

Did the CPI data affect the market?

Further, he added that, to quantify accumulation, cryptos are moving away from sellers to become urgent buyers. According to the data, the cryptocurrency market has not reached the accumulation levels just like the previous lows.

After the announcement of the Consumer Price Index data, bitcoin prices fell by around 10%. BTC is trading at an average price of $20,249. 24-hour bitcoin trading volume fell 17% to $40.7 billion.

The CPI data did not turn out to be good for the cryptocurrency market. Inflation is 8.3% year-on-year. However, it is higher than the expected 8.1%. While the basic data is recorded worse than expected.

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