The current price of Bitcoin has been declining at a rate that has made most of the seasoned traders in the crypto community quite afraid. According to data that was received from TradingView and Cointelegraph Markets Pro, it has been understood that the selloff of BTC on the 9th of May did intensify with the trading day progressing with the cryptocurrency hitting a daily low price of $31,000 as the market bulls readied themselves to mount what did result in a pretty weak defense.
Bitcoin Market Traders Have Been Shocked With The Sudden Price Fall
The market bulls of Bitcoin have been struggling to bring about a solid floor of support over the previous few months since the market bears had been quite persistent in their drive to push the price even lower. Currently, the price of BTC has gone down by 50% from its all-time high in November, with Glassnode- the on-chain analysis firm- noting that this decline is still comparatively modest when it is compared to the ultimate lows that the prior bear markets of BTC bring with themselves.
A far closer analysis into the on-chain data did show that the major capitulation by the holders of Bitcoin did intensify pretty hard in the recent weeks as the price went on to trend lower. Such evidence for this capitulation would be found when looking at the BTC exchange fee dominance, which does measure what percentage of the fees on the network of BTC was paid first to deposit BTC to an exchange.
As mentioned by Glassnode, the sudden increase in the exchange fee dominance of Bitcoin to 15.2% is actually the second-highest level in history- which further supports the case that the investors of BTC were seeking to de-risk, sell, and/o add some collateral that would be a margin in response to market volatility. Additional evidence of a rise in the risk-off sentiment could be found looking at the supplies in stablecoin.