Thiago Nigro, known as Primo Rico, commented on the current moment of Bitcoin’s fall and what indicators he is following to better understand the scenario, especially when observing the long-term digital currency.
The past few months have been tough for investors in this market, who have seen Bitcoin fall 56% against the Real. The price went from BRL 266 thousand in January 2022 to just BRL 114 thousand this Tuesday (14).
In this way, many believe that bitcoin is nearing its end, after a marked decline. However, the youtuber revealed some indicators that may calm investors down and show that the situation can get better in the long run.
Cousin Rico Explains What Caused the Bitcoin Crash
In a video that Primo Rico recorded last Monday (13), he explains some of the reasons he believes are driving bitcoin’s current decline in the market.
According to the youtuber, who has more than 5.7 million subscribers, the main reason for the move is the high interest rates caused by central banks around the world, mainly in the United States. This scenario reduces investors’ risk appetite as they earn more from fixed income investments.
He recalled that major stock market indices are also falling, showing a crisis scenario in several assets around the world.
The second reason, according to Thiago Nigro, is that Celsius Network froze client withdrawals and moved funds into wallets, as did Binance, which also froze client withdrawals, two alarming situations that may have sparked more panic in a fragile market.
Youtuber Revealed Indicators He Is Observing Right Now
According to Primo Rico, he’s looking at Bitcoin’s Fear & Greed indicator, which shows investors’ greed and fear. As extreme fear has been seen in the market, the moment could be interesting for new purchases.
Another indicator he looks at is what measures the power of miners, which is the hash rate. Since the falling price had no impact on miners’ activity, he believes the signal is positive for the market.
In addition, bitcoin whales, which have addresses with more than 1,000 BTCs, continue to buy more coins with the drop, meaning Primo Rico noted that this is also promising.
Analyzing the Mayer Multiple, which has reached an attractive Bitcoin price range, he believes that the digital currency is very cheap. Since Ethereum is related to the main cryptocurrency, he believes that the fundamentals are the same.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.