Dear subscribers,
In this version of Uncharted: Distilled we break down Uncharted #15 and the systematic selloff that drove bitcoin below $30k. Speculation over a hawkish Fed following a higher than expected inflation rate, spread fear across markets. We are not out of the woods yet.
Let’s dig in!
Summary
Uncharted #15 begins by analyzing the systematic selloff that drove drawdowns lower. Intense selling pressure was noted in the spot and futures market, while on-chain depicted exceeding unrealized losses and holding behavior resisting selling pressure. Extreme fear rattles the crypto market.
Macroeconomic tensions drove Swissblock’s Bitcoin Risk Signal into the high-risk zone. Meanwhile, bitcoin marked lower highs and eventually broke below $30k.
We are entering a similar regime as 1968-1975 where high US 10-year maturity yields are pushing risk-on assets lower.
Despite US equities outflows, bitcoin saw $45 million in inflows following Uncharted #14’s $131 million outflows.
The correlation between bitcoin and the S&P 500 hit unprecedented levels.
Sentiment shifted from anxiety to fear, but unrealized losses surpassed realized losses.
Higher accumulated bid transactions signaled intense selling pressure on exchanges.
Volume levels picked up, and the accelerated selling broke through the downward volume trends.
A strong support level is forming at around $26k.
Extreme fear continues to rattle the crypto market as the recent CPI and PPI hinted at a higher than expected inflation rate.