{"id":451422,"date":"2022-05-23T10:55:56","date_gmt":"2022-05-23T07:55:56","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/largest-difficulty-drop-since-july-2021-5-things-to-know-in-bitcoin-this-week\/"},"modified":"2022-05-23T10:55:56","modified_gmt":"2022-05-23T07:55:56","slug":"largest-difficulty-drop-since-july-2021-5-things-to-know-in-bitcoin-this-week","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/largest-difficulty-drop-since-july-2021-5-things-to-know-in-bitcoin-this-week\/","title":{"rendered":"# Largest difficulty drop since July 2021 \u2014 5 things to know in Bitcoin this week"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a326c4397e59\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a326c4397e59\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/largest-difficulty-drop-since-july-2021-5-things-to-know-in-bitcoin-this-week\/#%E2%80%9D_Largest_difficulty_drop_since_July_2021_%E2%80%94_5_things_to_know_in_Bitcoin_this_week_%E2%80%9C\" >&#8221; Largest difficulty drop since July 2021 \u2014 5 things to know in Bitcoin this week &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/largest-difficulty-drop-since-july-2021-5-things-to-know-in-bitcoin-this-week\/#BTC_price_%E2%80%9Cnuke%E2%80%9D_still_on_the_table\" >BTC price \u201cnuke\u201d still on the table<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/largest-difficulty-drop-since-july-2021-5-things-to-know-in-bitcoin-this-week\/#Showdown_as_WEF_plans_to_%E2%80%9Cchange%E2%80%9D_Bitcoin\" >Showdown as WEF plans to \u201cchange\u201d Bitcoin<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/largest-difficulty-drop-since-july-2021-5-things-to-know-in-bitcoin-this-week\/#Difficulty_reflects_conditions_catching_up_with_miners\" >Difficulty reflects conditions catching up with miners<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/largest-difficulty-drop-since-july-2021-5-things-to-know-in-bitcoin-this-week\/#On-chain_volume_hits_multi-month_lows\" >On-chain volume hits multi-month lows<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/largest-difficulty-drop-since-july-2021-5-things-to-know-in-bitcoin-this-week\/#Market_sentiment_back_at_rock_bottom\" >Market sentiment back at rock bottom<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Largest_difficulty_drop_since_July_2021_%E2%80%94_5_things_to_know_in_Bitcoin_this_week_%E2%80%9C\"><\/span>&#8221; Largest difficulty drop since July 2021 \u2014 5 things to know in Bitcoin this week &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>Bitcoin (BTC) is off to a better start than most this week as bulls avoid serious losses into the weekly close.<\/p>\n<p>Still heavily tied to declining stock markets, the largest cryptocurrency is nonetheless defending $30,000 on May 23 and eyeing the top of its post-Terra (LUNA) trading range.<\/p>\n<p>While there are no signs of an impending miracle price recovery, some are hoping that upside will feature before any form of reversion to a downtrend.<\/p>\n<p>Macro conditions remain tenuous, and the week of the World Economic Forum\u2019s (WEF) Annual Meeting is due to add fuel to the fire surrounding the tolerance of Bitcoin.<\/p>\n<p>Add to that the largest downward difficulty adjustment since last July and it becomes clearer that Bitcoin is battling for strength on multiple fronts.<\/p>\n<p>What could h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>en in the coming days? Cointelegraph presents several factors to keep in mind when it comes to BTC price action.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"BTC_price_%E2%80%9Cnuke%E2%80%9D_still_on_the_table\"><\/span>BTC price \u201cnuke\u201d still on the table<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In a refreshing contrast to recent weeks, Bitcoin managed to show strength following the weekly close into May 23. <\/p>\n<p>Despite still sealing a record eighth weekly red candle in a row, the lack of breakdown allowed BTC\/USD to instead retain $30,000.<\/p>\n<p>For Cointelegraph contributor Micha\u00ebl van de Poppe, the trend was already in evidence ove the weekend.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Still good on <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a>.<\/p>\n<p>Great breakout at the $29.3K area, resulting in a run towards $30.2K, which became resistance (as disclosed in the previous tweet).<\/p>\n<p>Consolidation now. <\/p>\n<p>Break would mean $31.1K and potentially $32.8K + <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/altcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#altcoin<\/a> momentum. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/Ia9svBR3Lf\">pic.twitter.com\/Ia9svBR3Lf<\/a><\/p>\n<p>\u2014 Micha\u00ebl van de Poppe (@CryptoMichNL) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CryptoMichNL\/status\/1528428781869969408?ref_src=twsrc%5Etfw\">May 22, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Given the overall picture with stocks correlation and monetary tightening forcing them down, not everyone was confident in the upside continuation of Bitcoin.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">BTC weekly:<\/p>\n<p>Alot of resistance above.<\/p>\n<p>Not so much support below.<\/p>\n<p>This is not a prediction. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/L34fV2sA7M\">pic.twitter.com\/L34fV2sA7M<\/a><\/p>\n<p>\u2014 Nunya Bizniz (@Pladizow) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Pladizow\/status\/1528586989267738625?ref_src=twsrc%5Etfw\">May 23, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>\u201cMy preferred Bitcoin scenario is a nuke straight to $22k before big bounce close to $40k,\u201d popular <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> trader Nebraskan Gooner <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Nebraskangooner\/status\/1528525066643841024\">told<\/a> followers on May 23:<\/p>\n<blockquote><p>\u201cThis would provide the best opportunity for bear market bounce and catch a lot of people off guard. Good to monitor all scenarios especially with everyone being so confident of a bounce.\u201d<\/p><\/blockquote>\n<p>That perspective chimes with existing demands for Bitcoin\u00a0to beat its previous bottom of $23,800 set on the back of the Terra meltdown.<\/p>\n<p>Late last week, Filbfilb, co-founder of trading suite DecenTrader and long-time market commentator, said that it was time to accept that the largest cryptocurrency was in a bear market.<\/p>\n<p>\u201cShould we lose the current support at $28,670 then the final support before new lows sits at $26,512,\u201d he <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.decentrader.com\/market_updates\/where-next-for-bitcoin-and-crypto\/\">added<\/a> at the time, identifying support and resistance levels that have yet to see a retest:<\/p>\n<blockquote><p>\u201cTo the upside, should price break through the daily resistance then the lower boundary of the Log Growth channel is at $34,270.\u201d<\/p><\/blockquote>\n<p>In the meantime, regardless of the strength of $30,000 this week, there should be relief before any potential <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> reversal, popular Twitter account IncomeSharks argued.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> &#8211; You can call it a dead cat bounce, relief rally, bearish re-test, or the bottom being in, whatever you want to say&#8230;. Bulls or bears should at least agree on us getting some upside first. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/o04UwAgDPn\">pic.twitter.com\/o04UwAgDPn<\/a><\/p>\n<p>\u2014 IncomeSharks (@IncomeSharks) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/IncomeSharks\/status\/1528533776803954690?ref_src=twsrc%5Etfw\">May 23, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>At the time of writing, BTC\/USD circled $30,500, data from Cointelegraph Markets Pro and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/symbols\/BTCUSD\/?exchange=BINANCE\">TradingView<\/a>\u00a0show.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Showdown_as_WEF_plans_to_%E2%80%9Cchange%E2%80%9D_Bitcoin\"><\/span>Showdown as WEF plans to \u201cchange\u201d Bitcoin<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The first in-person annual meeting of the World Economic Forum since the start of the COVID-19 pandemic is the macro trigger of the week.<\/p>\n<p>As the economic elite gathers in Davos, Switzerland, from May 22 through May 26, markets are gearing up for potential volatility on the back of their forthcoming remarks.<\/p>\n<p><strong><em>Related:\u00a0WEF 2022, May 23: Latest updates from the Cointelegraph Davos team<\/em><\/strong><\/p>\n<p>For Bitcoiners, the event tends to be a stressful one as the industry attempts to gauge sentiment among traditional finance heavyweights.<\/p>\n<p>This year is likely no different. Just one month ago, the WEF <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.weforum.org\/videos\/how-a-change-in-bitcoin-s-coding-could-reduce-its-carbon-footprint\">released<\/a> a video arguing that Bitcoin should change its proof-of-work (PoW) algorithm to proof-of-stake (PoS) for environmental purposes.<\/p>\n<p>An accompanying campaign, Change the Code, by Ripple co-founder and executive chairman Chris Larsen and Greenpeace USA, is attempting to gain mainstream support for the swap.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Moreover: \u201cExperts\u201d have found a way to move <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> from a decentralised network to a centralised, so they can control it. <\/p>\n<p>This \u201cchange the code not the climate\u201d campaign introduced by the WEF and financed by the wealthy has only one goal: Take over the control of <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a>. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/kMkXDLjLWc\">pic.twitter.com\/kMkXDLjLWc<\/a><\/p>\n<p>\u2014 Carl \u20bf MENGER \u26a1\ufe0f. (@CarlBMenger) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CarlBMenger\/status\/1523226571745767424?ref_src=twsrc%5Etfw\">May 8, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The implosion of stablecoin TerraUSD (UST) this month further dragged crypto into the crosshairs of the financial establishment. Christine Lagarde, president of the European Central Bank, claimed that all cryptocurrencies are \u201cworth nothing\u201d and, perhaps paradoxically, require regulation.<\/p>\n<p>\u201cIt is based on nothing, there is no underlying assets to act as an anchor of safety,\u201d she told Dutch television show College Tour in an interview released May 22.<\/p>\n<p>Both the WEF and Lagarde have come under fire from Bitcoin sources, with even firms such as Swiss native Bitcoin Suisse showing little public tolerance for their criticism.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">How much do the attendees of the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/WorldEconomicForum?src=hash&amp;ref_src=twsrc%5Etfw\">#WorldEconomicForum<\/a> really know about <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a>, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/crypto?src=hash&amp;ref_src=twsrc%5Etfw\">#crypto<\/a> and the potential of <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/blockchain?src=hash&amp;ref_src=twsrc%5Etfw\">#blockchain<\/a> \u2049\ufe0f <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/WEF22?src=hash&amp;ref_src=twsrc%5Etfw\">#WEF22<\/a> <\/p>\n<p>To help them (&amp; Christine <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Lagarde?ref_src=twsrc%5Etfw\">@Lagarde<\/a>) out &#8211; we offer a short primer!  <\/p>\n<p>(Help us spread the word <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/thecryptovalley?ref_src=twsrc%5Etfw\">@thecryptovalley<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/TheBlock__?ref_src=twsrc%5Etfw\">@TheBlock__<\/a>  <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/crypto?ref_src=twsrc%5Etfw\">@crypto<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/wef?ref_src=twsrc%5Etfw\">@wef<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/FT?ref_src=twsrc%5Etfw\">@FT<\/a>)<\/p>\n<p>\u2014 Bitcoin Suisse (@BitcoinSuisseAG) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/BitcoinSuisseAG\/status\/1528355234904416257?ref_src=twsrc%5Etfw\">May 22, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Just like El Salvador President Nayib Bukele\u2019s Bitcoin-focused summit attended by 44 countries last week, meanwhile, this week\u2019s Davos event will see a conspicuous competitor champion Bitcoin over fiat currency.<\/p>\n<p>The Oslo Freedom Forum, to be held from May 23 through May 25 in Oslo, Norway, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/oslofreedomforum.com\/oslo-freedom-forum-2022\/\">describes<\/a> itself as \u201ca global gathering of activists united in standing up to tyranny.\u201d<\/p>\n<p>Speaking at the event are a host of Bitcoin\u2019s best-known names including economist Lyn Alden, Strike CEO Jack Mallers and co-founder and CEO of Lightning Labs Elizabeth Stark,.<\/p>\n<p>\u201cTwo international forums starting tomorrow are on the surface similar, but diametrically opposed. The World Economic Forum and the Oslo Freedom Forum. A necessity of manipulated money is coercion, and the loss of individual rights and freedoms. See you in Oslo,\u201d entrepreneur Jeff Booth, also due to attend, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/JeffBooth\/status\/1528286704708231170\">tweeted<\/a> over the weekend. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Difficulty_reflects_conditions_catching_up_with_miners\"><\/span>Difficulty reflects conditions catching up with miners<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Major Bitcoin price drawdowns are not without their consequences.<\/p>\n<p>According to the latest estimates, Bitcoin\u2019s network fundamentals are now due to adjust for the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">trip<\/a> to $30,000.<\/p>\n<p>Difficulty, which reflects changing dynamics among miners, will reduce by around 3.3% at its next automated readjustment this week. While modest compared to some adjustments, the change will nonetheless be the largest downward shift since July 2021.<\/p>\n<p>The reason is simple \u2014 Bitcoin price action has not only headed south, but is challenging miners\u2019 profitability.<\/p>\n<p>Miner production cost is key in determining their ongoing activity. A decline below the number, currently at around $26,000, would cause larger shifts in network fundamentals in order to maintain profitable participation. <\/p>\n<p>According to monitoring resource MacroMicro, as of May 21, it cost an average of $26,250 to mine one Bitcoin.<\/p>\n<p>Despite possible profitability pressure based on estimated data, miners are not showing signs of capitulation, still keeping BTC sales to a minimum, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/glassnodealerts\/status\/1528605563663294464\">according<\/a> to the latest figures from on-chain analytics platform Glassnode.<\/p>\n<p>Miner outflows \u2014 coins leaving miner wallets \u2014 hit a one-month low on May 23.<\/p>\n<p>Bitcoin\u2019s mining hash rate, meanwhile, has come off its all-time highs to circle an <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/miningpoolstats.stream\/bitcoin\">estimated<\/a> 233 exahashes per second (EH\/s) as of May 23.<\/p>\n<p>For Ki Young Ju, CEO of fellow analytics platform CryptoQuant, the overall trend remains similarly clear.<\/p>\n<p>\u201cWhile BTC price drops -56% since Nov 2021, hashrate increased +75%,\u201d he <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ki_young_ju\/status\/1528573904922484738\">noted<\/a>:<\/p>\n<blockquote><p>\u201cThe market is cold, but the fundamentals are full of heat from mining rigs.\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/cf530962-6bd8-40e1-8a4f-30703addce1c.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin miner outlow volume 7-day moving average chart. Source: Glassnode\/ Twitter<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"On-chain_volume_hits_multi-month_lows\"><\/span>On-chain volume hits multi-month lows<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bitcoin has been famously boring for the mainstream consumer base throughout 2022, thanks to price action, but now, even participation from existing investors is waning.<\/p>\n<p>On-chain data shows that volumes have been in steady decline, with the notable exception of the post-LUNA panic.<\/p>\n<p>Glassnode, which tracks seven-day moving average on-chain transaction volumes, recorded nine-month lows on May 23.<\/p>\n<p>From May 9 onwards, the moving average began falling precipitously, and by May 22 had fallen 70%.<\/p>\n<p>While CryptoQuant\u2019s Ki <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ki_young_ju\/status\/1526776780249604098\">underscored<\/a> the lack of interest among retail buyers, fellow analyst Willy Woo argued that it was the big players that really held sway over market fluctuations.<\/p>\n<p>\u201cVery little of the volume and therefore impact on price comes from retail needing to buy groceries,\u201d he <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/woonomic\/status\/1527338789655367700\">wrote<\/a> as part of a response during a Twitter debate last week:<\/p>\n<blockquote><p>\u201c5% of the supply is owned by people who hold less than $30k of BTC, the bulk of volume is larger investors who sell to hedge market risk.\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/31192dca-be80-438d-bf1f-38e3d3059e39.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin total transfer volume 7-day moving average chart. Source: Glassnode<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Market_sentiment_back_at_rock_bottom\"><\/span>Market sentiment back at rock bottom<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In contrast to some modest price strength, Bitcoin is anything but bullish if looked at from the point of view of sentiment.<\/p>\n<p><strong><em>Related:\u00a0Top 5 cryptocurrencies to watch this week: BTC, BNB, XMR, ETC, MANA<\/em><\/strong><\/p>\n<p>According to classic sentiment gauge, the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.lookintobitcoin.com\/charts\/bitcoin-fear-and-greed-index\/\">Crypto Fear &amp; Greed Index<\/a>, the majority of the market is bracing for fresh downside.<\/p>\n<p>At 10\/100, the Index is back in the lower segment of its \u201cextreme fear\u201d zone which has historically appeared at price bottoms.<\/p>\n<p>Fear &amp; Greed is no stranger to bottom signals this year, having managed to drop to just 8\/100 \u2014 the lowest since March 2020 \u2014 earlier this month.<\/p>\n<p>Analyzing sentiment regarding the highly-correlated S&amp;P 500, trader, entrepreneur and investor Bob Loukas shed some light on what could be a copycat pattern for Bitcoin.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Two observations on sentiment in equities.  <\/p>\n<p>Absolute extreme bearish sentiment likely means a sharp counter trend rally is very close.<\/p>\n<p>Consistent bearish sentiment confirms this is a cyclical bear market of duration, not a buy the dip just yet. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/Jpfo9GUSMr\">pic.twitter.com\/Jpfo9GUSMr<\/a><\/p>\n<p>\u2014 Bob Loukas (@BobLoukas) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/BobLoukas\/status\/1528394571100692480?ref_src=twsrc%5Etfw\">May 22, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Last week, meanwhile, popular trader and analyst Rekt Capital argued that a more substantial price change would be necessary to change sentiment in a way that matters.<\/p>\n<p>\u201cIt\u2019s easy to become bullish on BTC on a green day &amp; bearish on a red day. But BTC is still just ranging between $28K-$32K,\u201d he <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/rektcapital\/status\/1527576283210719232\">tweeted<\/a>:<\/p>\n<blockquote><p>\u201cThis will continue until either of these levels is broken. Intra-range moves aren&#8217;t substantial enough to dictate changes in sentiment.\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/c2044049-75ec-442a-a07f-090eee6acd66.png\"><figcaption style=\"text-align: center;\"><em>Crypto Fear &amp; Greed Index vs. BTC\/USD chart (screenshot). Source: LookIntoBitcoin<\/em><\/figcaption><\/figure>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/largest-difficulty-drop-since-july-2021-5-things-to-know-in-bitcoin-this-week\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Largest difficulty drop since July 2021 \u2014 5 things to know in Bitcoin this week &#8220; Bitcoin (BTC) is off to a better start than most this week as bulls avoid serious losses into the weekly close. Still heavily tied to declining stock markets, the largest cryptocurrency is nonetheless defending $30,000 on May 23&#8230;<\/p>\n","protected":false},"author":1,"featured_media":451423,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvOGFmMTI4MjEtYmIwMS00ZDkwLWJiMTItOWI4OGI3YzdiM2RiLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74989,74937,73785],"class_list":["post-451422","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-mining","tag-bitcoin-price","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/451422","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=451422"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/451422\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/451423"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=451422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=451422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=451422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}