The crypto market experienced a severe collapse on Tuesday, and according to many on-chain metrics marked a bottom of the Bitcoin (BTC) price.
The total capitalization of the Crypto Market has only been working above $ 2.7 trillion – which has a nearly $ 1 trillion wipeout since its peak in December 2024, according to TradingView data. Many indicators suggest that the sale of Tuesday can be marked by a local bottom.
Andre DragoschHead of research in Bitwise Europe, who has been highlighting that the Crypto Asset’s sentimental index has hit the lowest level since August, which at the same time avoiding the Yen Carry trade, who saw Bitcoin make the bottom around the $ 49,000.
“The Crypto Asset’s sentiment index just flashed a massive signal of contractor for Bitcoin. Extensive bearnishness throughout the flow, on-chain data, and derivatives suggest that downside risks are quite limited. At these prices, the risk-reward views appear to be desirable, “Dragosch said.
On Tuesday, investors lost $ 1.8 billion-the largest single-day realized loss since August-the Yen carried a trade relentlessly resulted in $ 3.2 billion in realized losses, according to data of glassnode.
In addition, short-term holders, defined by Glassnode as investors held by Bitcoin for less than 155 days, sent 43,600 BTC ($ 3.9 billion) to replace the loss-the highest level since August 2024 .
These metrics are important in recognizing the potential bottom of the market, suggesting that Bitcoin may be close to a key point in the process.
