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The ongoing market correction has kept investors and crypto traders in suspense. Major assets in the cryptocurrency market are shedding over 20% of their value, with Bitcoin witnessing the biggest fall since a month. Over the 24-hour period, crypto liquidations have hit over $900M and $174M in the last three hours.
Surprisingly, holders of the popular meme coin Shiba Inu are more active than usual, even as cryptos continue to undergo correction. According to data from WhaleStats, there’s an 88% increase in network activity in SHIB whales addresses and more traders are leveraging smaller positions, such as SHIB.
Reasons For The Increased Network Activity Outlined
An increase in network activity can be attributed to frequent transactions or fund manipulations. Judging by the behavior of the market lately, the rise in network activity could be caused by an incline in selling.
TradingView reveals that Shiba Inu has shed about 15% of its worth in four days. However, SHIB holders aren’t the only one selling. The price drop of major digital assets, particularly BTC, has forced many traders to exit the crypto market in anticipation of a further decline.
Before the heavy price drop, Shiba Inu whales added to their holdings by buying more SHIB to put the token at the top spot ahead of the FTX token. FTX token has been battling SHIB for the top spot among ETH whales.
When SHIB dominance fell 5%, FTX token claimed the top spot. Shortly after, SHIB holdings increased by $300M, which was enough to put the meme coin back on top, with holdings totalling $1.7B on whale addresses. Despite the strong buying, it wasn’t enough to kickstart a bull run. Net flows and network growth are still languishing in the red territory.
Will Virtual Assets Survive The Bearishness?
The current market metrics have put analysts at opposite sides of the debate, with some saying that the market is officially in the bear zone while others are optimistic that Bitcoin will bottom out and then become bullish again.
Bitcoin traders have been liquidating their positions for the past one week, with figures hitting over $500M. BTC has fallen from its consolidation level to below $42k.
CryptoWhale was among the first to predict a BTC decline in October, when BTC was consolidated between $48k and $51k. The skeptic blames the bear market on bubbles created by fake money and fraud, pointing fingers at Tether. CryptoWhale said the real people buying BTC were retail investors and that the bubble it underwent was based on fraud.
He predicts BTC to drop to the $10k level. However, he expects exchanges to malfunction and even shut down on the pretense of network issues to arrest the declining prices.
Some market experts, like Smartcontracter predict that BTC will bottom out at anywhere between $42k and $37.5k, a reminisce of what the market experienced in 2019 and then kickstart a bull run to $100k.