Cody McGrath 
Bitcoin value tanks by over 60% as it hovers around $20,000 levels with institutional traders shorting the coin heavily.
In terms of Bitcoin and larger market correction, the month of June 2022 was severe. Bitcoin (BTC), the world’s largest cryptocurrency, fell by more than 37% in one month, achieving its worst monthly performance since 2011.
Since then, Bitcoin has been settling around the $20,000 mark. It has also been one of the worst quarterly performances for BTC, with the currency losing more than 60% of its value in Q2 2022.
According to Glassnode, and on-chain data provider, while U.S. inflation predictions remain elevated and clouds of impending recession loom, the market remains heavily risk-off. It has also been reflected in the on-chain performance and network activity of Bitcoin.
The BTC price drop has been eerily similar to past bear market bottoms in 2018 and 2020. However, there is now little impetus for a BTC price turnaround. Glassnode analysts wrote:
“The case for bitcoin bottom formation is one grounded in observable dominance of strong-hand investors, historically significant lows in numerous macro oscillators and a strong confluence with prices hovering in striking distance of several bear-market pricing models. However, can these HODLers hold the line?”
On-chain Data Shows High Conviction Accumulation
According to Glassnode’s study, despite the price drop, there is still a strong belief in accumulation and self-custody. Exchange balances have been emptying at hitherto unheard-of rates. On the other side, BTC “shrimp and whale balances” are rapidly climbing.
On the other side, on-chain activity shows that network activity and user count are approaching the bear market area. According to Glassnode:
“Address activity for example has declined by 13% from over 1M/day in November, to just 870k/day today. This suggests little growth in new users, and even a struggle to retain existing ones.”
At this point, predicting the Bitcoin bottom would be tough. If global macroeconomic conditions worsen, some market analysts predict that the BTC price would fall to $15,000 or even lower.