Havoc in the Crypto Market as Bitcoin Drops to its Lowest Levels Since February

The flagship crypto on Sunday night broke its key support levels amid intense selling pressures in play as weighed heavily on the value of many Crypto assets including Ethereum, XRP, Internet computer.

Sell -offs got intensified with Elon Musk’s most recent tweet reaction pushing the price of the flagship crypto to their lowest prices since February after implying via a Twitter exchange that the world’s most valuable car company might diversify its Bitcoin holdings.

At the time of drafting this report, the world’s most valuable crypto asset by market value was down by 10% for the day as it traded around $43,200 on the FTX exchange with a daily trading volume of $64 Billion. Bitcoin currently has a market value hovering around $808 Billion.

The pioneer crypto asset, momentarily broke below their key support levels of $45,000 for the first time in almost 12 weeks after the powerful tech billionaire gave his bias to a social media post that suggest Tesla might sell off all its $1.5 billion stake in the largest cryptocurrency.

It’s important to note that Elon Musk has a strong affluence in the crypto-verse via having a strong following on social media with his market-moving tweets thereby triggering so much outrage among crypto fans after such statement was made, as present market sentiments reveal record cash outflows in play on the account that many retail investors are reducing their exposures.

That being said, market experts, however, remain bullish on the crypto market, particularly on Bitcoin and Ethereum as they continue to revolutionize many aspects of the global financial ecosystem, and in spite of its implied volatility, the long-term fundamentals for many of these digital assets remain rock solid.

Giving credence to such bullish is recent data from Bitcoin Treasuries, pointing to increased institutional exposure to BTC, as such investors accumulated about 215,000 Bitcoin worth close to $10.billion in the past 4 weeks.

Consequently, data retrieved from Glassnode affirmed the Bitcoin supply held by long term holders has returned to accumulation mode, even as price dips.

Though it looks similar to the 2017 peak, long term investors of today actually held +8% more of the circulating supply in dormant wallets.

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