U.Today – Amid the current price crash, Michael Saylor, co-founder and chairman of MicroStrategy, has issued a message that has resonated in the cryptocurrency community. In a tweet, Saylor wrote: “Don't sell your bitcoins.”
Saylor’s message comes at a time when some investors may be tempted to sell, as the Crypto Fear and Greed Index suggests the cryptocurrency market is mired in extreme fear. Given the current market sentiment, panic selling driven by fear and uncertainty can lead to hasty asset liquidations, prompting Saylor’s warning.
The brief gain in cryptocurrency markets following the U.S. jobs release on Friday immediately reversed into volatile trading, sending Bitcoin (BTC), the largest cryptocurrency, to its lowest level in a month.
Following the announcement of the jobs data, Bitcoin (BTC) surged above $57,000, only to reverse gains and fall below $54,000, its lowest level since August 5.
Cryptocurrencies saw mixed price action in early trading on Saturday, with Bitcoin down 3% over the past 24 hours to $54,360. Several cryptocurrencies also traded in the red, with Bitcoin Cash and Pepe reporting losses of nearly 4%.
The price action triggered nearly $292 million in liquidations over the past 24 hours across crypto derivatives markets as the volatility caught leveraged traders off guard, mostly buyers hoping for further price gains, according to data from CoinGlass.
What indicators and analysts suggest about the price of BTC
According to Julio Moreno, head of research at CryptoQuant, Bitcoin's lackluster performance could be due to a lack of demand growth. He added: “In fact, demand is declining right now. Basically, all valuation metrics are in bearish territory.”
CryptoQuant CEO Ki Young Ju noted in a tweet that Coinbase’s (NASDAQ:) Bitcoin spot trading volume dominance has returned to pre-spot ETF levels. For the bull cycle to continue, U.S. demand needs to pick up, Ju added, stating, “I expect this to happen in Q4, but I could be wrong. We’re mid-cycle and haven’t hit the retail bubble yet.”
According to cryptocurrency analyst Ali Martinez, “The accumulation trend score is approaching 0, indicating that market participants are either distributing or not accumulating Bitcoin at the moment.”
This article was originally published on U.Today
