Despite the bear market cryptocurrencies are in, data reflecting wallets containing Bitcoin (BTC) show that more than half of these accounts are still profitable. According to Glassnode data, 56.2% of all Bitcoin (BTC) addresses continue to be profitable according to the values they were first opened.
Bitcoin (BTC) once again reminded that the bear market continues severely, regressing to the $ 17,000 band over the weekend we left behind. Some analysts, who think that the downward trend will continue, claim that the price of Bitcoin (BTC) may drop to $ 5,000. After the Bitcoin (BTC) price hit a 19-month low of $17,600 over the weekend, many analysts began to predict a potential bear market. They believe the price could drop to around 84.5% from its all-time high.
If we take a look at the past bear market data; The rate of Bitcoin (BTC) addresses that were profitable in the March 2020 period had decreased to 41 percent compared to that period. Similarly, in the bear market in 2018, profitable Bitcoin (BTC) addresses fell below 50 percent.
Referring to historical data, some analysts say that the probability of a continuation of the decline is accordingly higher. On the other hand, along with Bitcoin (BTC), the altcoin market showed a positive course in the first half of the week, while it was subject to a correction since yesterday evening. After recovering to $21,700 this week, Bitcoin tested the $20,000 level again in the early hours of the day.
The bearish trend in the cryptocurrency markets has returned ahead of Fed Chairman Jerome Powell's speech to the United States Congress today and tomorrow. Investors will watch Powell's speech closely for clues about the monetary policy to be followed in the near future.