Bitcoin, the largest cryptocurrency in the crypto market, fell below the psychological threshold of $40,000 and is trading at $38,473 at the time of writing, according to coinmarketcap.

The downtrend seen in the leading crypto is thought to be due to the highly leveraged traders in the futures market. However, whales in the spot market are apparently waiting for some more declines to buy Bitcoin.

It is seen that 67.9% of all accounts on the Binance futures platform were in a long position at the time this news was written. According to the data, the Long/Short ratio for the Bitcoin/USDT pair also climbed to 2.08, climbing to the top of the last month.

In addition, the number of accounts holding 100 to 100,000 BTC in their wallets has been stable for the past month, according to on-chain data. Whales are not very interested in buying BTC at these levels right now.

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The buying stagnation in the spot markets can also be examined from the number of addresses that have just joined the network. According to Glassnode data, the number of new addresses per week remained stagnant, averaging around 400,000.

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Mike McGlone, one of the Bloomberg analysts, evaluated the current situation of Bitcoin as follows:

   "#Bitcoin indicating a rough week ahead - Inflation Unlikely to Drop Without Risk Assets Do: Most assets are subject to the ebbing tide in 2022, on the inevitable reversion of the greatest inflation measures in four decades, but this year may mark another milestone for Bitcoin."

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Mike McGlone said that he believes that there will be new records with BTC becoming digital gold this year.

Bitcoin is being traded at $38,473.17 at the time of writing. BTC's 24-hour trading volume is $16,898,882,843 USD.