Well. That was an unpleasant May for crypto. With such a severe price correction, some are wondering whether the party that began last September is now drawing to a close.
Context and factual data are necessary tools for market participants to remove emotional decision making when volatility surges. Kraken Intelligence has examined a number of historical trends and current influences to see what may lie ahead for BTC, ETH, ADA, DOGE and DOT.
When looking at who the buyers and sellers were, long-term crypto holders – or smart money – held through this selloff while participants who joined within the last year were most likely to capitulate. That may well indicate resilient demand among the more experienced crypto investors who have seen similar corrections before.
However, Ethereum continues to attract market buyers in 2021. On-chain data shows that the number of Ethereum whales soared in May and remained largely unchanged despite ETH falling as much as 60%. Furthermore, certain technical tools indicate that demand for ETH has yet to reach peak market cycle euphoria. Both metrics have many analysts wondering whether ETH will continue to outperform BTC in this cycle.
By downloading this latest report, you will gain a better understanding of the May selloff, what happened in the world of DeFi and NFTs, what lies ahead for cryptocurrencies like BTC and ETH, and a deeper dive into bull market corrections.
Bitcoin’s Correction – The plunge from all-time highs brought great unease to the crypto markets. This was the worst drop in price since March 2020. We examine historical price pullbacks to see what possibilities lie ahead once price stabilizes.
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