The crypto-currency market hasn’t bottomed out yet, it’s going to plunge again!

The capitalization of the global crypto-currency market fell by another 7% on the day to below $1 trillion. It now stands at $996.2 billion. However, experts suggest that investors will still suffer.

Will the crypto-currency market go down again?

According to Willy Woo, a well-known crypto-currency analyst, past lows coincide with short-term holders having a lower cost base than long-term investors. However, he suggests that the crypto-currency market is close to that point but not there yet.

He added that in 2015, the crypto market experienced a final capitulation in the same area where 2019 bottomed.

Have we bottomed?

In terms of max pain, the market has not felt the same pain as prior bottoms. We can see this in the blue line (supply in profit by @glassnode).

We have only reached 52% of coins being underwater so far.

Prior bottoms were 61%, 64%, 57%. pic.twitter.com/qx4cvKO7IA

– Willy Woo (@woonomic) September 14, 2022

Meanwhile, Willy Woo suggested that the crypto market has not felt the same drop compared to previous years. He pointed out that the market has only reached 52% of “underwater” coins (this term refers to a contract or financial asset that is worth less than its theoretical value.) so far. However, the last low points recorded were 61%, 64% and 57%.

He mentioned that history need not repeat itself in this case. The coverage of the available future has not picked up the On-chain so far.

However, Willy Woo suggests that this is one of the signals he is watching for before the turnaround capital returns. The bid in the earnings trendline breakout has broken in all previous declines in the crypto market.

Did the CPI data affect the market?

Furthermore, he added that to quantify the accumulation, cryptos are moving away from sellers to urgent buyers. According to the data, the crypto-currency market has not reached the accumulation levels just like the previous lows.

After the announcement of the consumer price index data, bitcoin prices fell by about 10%. BTC is trading at an average price of $20,249. Bitcoin’s 24-hour trading volume fell 17% to $40.7 billion.

CPI data did not turn out well for the crypto-currency market. Inflation is 8.3% year-over-year. However, it is higher than the expected 8.1%. While the core data is recorded worse than expected.