[Software] Bitcoin price drops below $24,000, but with accumulation

[FNX Magokiler]

The price of Bitcoin, and therefore of Ethereum and other altcoins, has fallen below $24,000. It seems that there are different origins of this fall, some are within the cryptocurrency segment and others are external factors. But, we must see beyond the price of Bitcoin at any given time.

As of this writing, Bitcoin loses over 14% over a 24-hour period and 26% over a 7-day period. Ethereum is having a worse time, since it loses almost 16% in a period of 24 hours and more than 36% in a period of 7 days.

Bitcoin Price Falls Below $24,000
One of the reasons for this drop is that the fintech protocol Celsius has interrupted operations. It seems that he is currently in a rather negative situation. It is quite common for worthless protocols or projects to end up collapsing and dragging down Bitcoin and other cryptocurrencies.

But there are other problems that are causing the sharp drop in Bitcoin. The international economic situation is far from good. Asian markets are selling futures and Wall Street futures are showing a bearish trend carrying over from last week.

The United States is in a really bad economic situation. Inflation is of great concern, and everything is waiting for the United States Federal Reserve to release data on June 15.

Perhaps one of the most interesting data is given by CrediBULL on its Twitter account. It highlights that it has gone from 11 million bitcoin in HODL to more than 13 million. This means that we are at a point of accumulation, not distribution. But the reality is that it is not being sold, nor has it been sold, on the contrary, there is an accumulation process.

We must keep in mind that the price of Bitcoin is cycles. After hitting all-time highs (also called ATHs) there is usually a period of correction.

 

 

It happened in 2016, when I hit $20,000 and then went down to $4,000. After hitting the $65,000 figure, we are in another period of price readjustment.

Hash rate and commissions are other good indicators
There are two parameters that show the good health of the Bitcoin network and that show that we must look beyond the price. We must distinguish between the value of the network and the market price, which are not the same. Something that is usually confused.

If we analyze the Bitcoin hash rate or mining power data, the situation could not be better. In June 2021 we saw a hash rate drop of 60% due to the mining ban in China. As we can see in the graph, it is currently well above what it was before that event. Something that shows the good state of this cryptocurrency.

Another piece of information is the Bitcoin transaction fees. Currently, the cost per transaction averages around 1.5 dollars. But not only the price of commissions is very low, the use of the Lightning Network has also grown. More and more users are betting on making transactions in the second layer of Bitcoin for having commissions of practically 0 dollars and being executed instantly.

Maybe it's a good time to buy a few sats (the most basic unit in which bitcoin is divided). Always with a head, a small amount that we do not need in the short or medium term and that we can afford to "lose". We refer to losing a fall in price (such as this one) and whose amount has fallen with respect to the money invested.