Bitfinex Report: Bitcoin begins to recover after experiencing its largest pullback this cycle

BlockBeats reports that on August 12, Bitfinex released a report stating that last week, Bitcoin strongly rebounded from its recent low of nearly $49,000, rising by almost 28%, which is the lowest price since February. This bounce brought BTC back above the key level of $60,000 after experiencing a significant sell-off in August when it fell 33.32% from its cycle high and all-time high of $73,666. This was the largest correction in this current cycle.

Key indicators such as Mayer Multiple (which compares Bitcoin's current price to its 200-day moving average (200DMA)) provide insights into the severity of this correction. During the recent decline, Mayer Multiple dropped to 0.88 - an unseen level since November 2022 - indicating that Bitcoin's trading price is significantly below its historical average trend and has entered a strong bearish phase.

On-chain data also highlights the intensity of this sell-off. The realized price for short-term holders (STH cost basis), i.e., the average purchase price for recent buyers is currently at $64,860. The spot price for Bitcoin recently approached less than one standard deviation (-1 SD) below this STH cost basis; historically only occurring approximately on about 7.1% of trading days – highlighting how severe current market conditions are.

The MVRV ratio for short-term holders (comparing current market prices with new investors' purchase prices) shows that unrealized losses held by this group are at their highest since the bear market low point in 2022 overall these indicators suggest increased bearish sentiment and pressure among short-term investors typically seen at local lows.

The U.S economy continues to show resilience despite ongoing concerns about potential slowdowns; recent data supports more optimistic prospects: last week’s significant drop in unemployment benefit claims and steady growth in wholesale inventories provided solid foundations for economic growth especially during Q2 when U.S wholesale inventories played a key role in economic expansion.

In the latest news from the crypto world, Harris has become a frontrunner for the 2024 U.S presidential election, leading Trump by a slim margin in betting odds and recent polls. As her campaign momentum continues to grow, speculation about her potential stance on cryptocurrencies is also increasing especially since her team has begun engaging with industry executives. This engagement suggests that cryptocurrency policy could come into focus over the next few months sparking interest and anticipation within the crypto community.

Meanwhile major financial institutions like BlackRock and Nasdaq have made progress in digital asset markets recently submitting applications to SEC requesting options trading for BlackRock's spot Ethereum ETF. This move follows closely after SEC approved several well-known companies launching Ethereum-linked ETFs marking significant expansion of digital asset investment choices as these developments unfold SEC continues playing a crucial role shaping cryptocurrency landscape evident from its recent decision to delay approval of Hashdex’s proposed ETF which aims to directly hold spot Bitcoin and Ethereum extending review period until September 30th 2024 reflecting SEC’s cautious approach when assessing impacts new digital asset products may have on market.