BTC Price Discovery to be Choppy; NFT Worlds Bring Minecraft Into Web3

Chart of the Day

On Sunday, the crypto market's swift recovery was rudely interrupted by a downside correction as the conflict between Russia and Ukraine intensified. As a result, BTC plummeted below the $37k handle before seeing a slight bounce back to consolidate its losses in the upper $37k region.  As of the time of writing, the largest crypto by market cap is hovering near the $38k level after experiencing a 1.65% loss within the last 24 hours. Should the macroeconomic conditions continue to deteriorate, a more severe market sell-off of risk-on assets will likely be triggered, pushing BTC to retest its support at the $35k-$37k range. In a similar vein, ETH is now consolidating its losses at the $2,600 level after shedding 3.48% of its market value in the past 24 hours, while most major altcoins have also flipped red. Even LUNA, which managed to post an impressive 40% gain in the past week through the sea of red, is now experiencing losses (4% within the past 24 hours) on the back of the market plummet that took place on Sunday. In such turbulent times, it would be prudent of us to stay ahead of the noise by having a better understanding of the correlation between exchange net flows and their respective realized prices. As the majority of coins leaving exchanges into cold wallets are priced between the $33k-49k range, there are multiple support levels that will likely render BTC's price discovery within said range an extremely choppy one.