Bitcoin Trading 25% Below All-Time High Amid Extreme Fear in Market
Bitcoin is currently trading at a 25% discount from its all-time high of $109,350, with a market cap of $1.61 trillion. The overall crypto market capitalization stands at $2.66 trillion.
Market Sentiment and Fear
The fear and greed index has dropped to an extreme fear level of 10, reflecting heightened anxiety among investors amidst rising liquidations.
Liquidation Figures
Recent data shows nearly $1 billion in liquidations across the crypto market in the last 24 hours, with total liquidations at $993.16 million. Long positions account for $818.16 million while short positions are at $174 million. Bitcoin alone has seen $491.68 million in liquidations, predominantly from long positions totaling $415.09 million.
Correlation with M2 Money Supply
Raoul Pal, CEO of Real Vision, indicates a strong correlation between Bitcoin price movements and the global M2 money supply, with a lag of about 10 weeks. Recent trends show a decline in the M2 supply from $108 trillion to around $104 trillion, suggesting the Bitcoin price drop was anticipated. However, as M2 recently increased to approximately $107 trillion, a potential consolidation phase for Bitcoin may precede a bullish recovery.