CryptoQuant’s CEO said that one metric is flagging a major red flag for Bitcoin (BTC), bulls.
Ki Young Ju informs his 292,600 followers on Twitter that historical data ShowsBitcoin could plummet to $14,000.
“So here’s hopium for bears.
If BTC crashed so hard due to the macro crisis and all Bitcoiner institutions go underwater, it could go $14,000 based on historical maximum drawdown.”
At the time this article was written BitcoinIt is currently down 3.58% and listed at $29,000. A move to the analyst’s bearish price target suggests a 52% downside risk for BTC.
According to the quant analyst the most recent Bitcoin investor will likely be deep under water if market prices fall into his worst-case scenario.
“Bitcoin maximum drawdown in worst-case scenario.
Newbies down 67%
One bear cycle down 39%
Profit guaranteed for two bear cycles.
Profit guaranteed for three bear cycles.
Today, newbies who joined last year are in -34% loss.”
Ki Young Ju next ProvidesThe average entry price of each generation of Bitcoin investors during its 11-year existence, using the UTXO age band metric. TracksThe potential price level at which long-term holders of Bitcoin could sell it.
#BitcoinEntry Price for OG
1st gen – $1.3
2nd gen – $653
3rd gen – $8,717
4th gen – $43,582
I’m the 3rd generation. Keep going, 4th Gen. pic.twitter.com/iWkEwFO4zV
— Ki Young Ju (@ki_young_ju) May 14, 2022
The analyst also recently ObservedInstitutional investors are now the dominant force behind Bitcoin trading.
“Retail investors are leaving the crypto market. Not bad for accumulating Bitcoin with institutions, but still worried about overall volume, which is significantly decreased compared to last year.”
Next, CryptoQuant CEO looks at the leading smart contract platform Ethereum. (ETH). He HighlightsDespite a dramatic decline in price, the ETH ecosystem continues to be strong. This is due in large part to high interest in new blockchain niches such decentralized finance (DeFi), NFTs (non-fungible tokens), decentralized autonomous groups (DAOs), and Play-to-earn Blockchain games (GameFi).
“ETH price dropped -56% from the top, but the number of active addresses just decreased by 7%.
Ethereum currently has 551,705 DAU (Daily Active User) if we treat each address as a user.
These degens don’t care about ETH price but ape into DeFi, NFT, DAO, and GameFi projects.”
EthereumThe price of $1,965 has fallen by 2.57%.
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Disclaimer: The Daily Hodl’s opinions are not meant to be considered investment advice. Before making high-risk investments in Bitcoin, cryptocurrency, or digital assets, investors should do their homework. You are responsible for any losses you may sustain and all transfers and trades that you make. The Daily Hodl doesn’t recommend any cryptocurrency or digital asset trading. The Daily Hodl is an affiliate marketer.
Featured Image: Shutterstock/kilshieds