Crypto traders and investors started out the week with a major shock to the markets. As assets across the blockchain industry went into a collective dive on Monday, users took to Twitter to voice their dismay (or in some cases jubilation) with the current state of crypto.
Inflation, potential interest rate hikes, a looming recession, and yet another DeFi fiasco have all contributed to the current onslaught seen in markets on Monday. As a result, Bitcoin's (BTC) price plunged to levels not seen since late 2020, several crypto exchanges limited users from withdrawing their tokens, an increasing number of Web3-centric companies announced layoffs, and the floor prices of various nonfungible token (NFT) projects tumbled.
Taking a look at a few tweets from seasoned crypto enthusiasts shows the overall sentiment. Holding Bitcoin and alts is the true crypto investors' theme, however, some appear to be experiencing a weakening of their supposed diamond hands. As one user noted:
The crypto space isn’t alone in its plight, with the entire stock market experiencing a major loss in tandem. Increased monetary tightening from the Federal Reserve has caused investors to sell off many types of stocks as the S&P 500 fell 4% to reach a new low for 2022.
Whales and former whales have begun to make their voices heard as the realization that they’ve lost a massive chunk of their wealth becomes evermore apparent.
While technical analysis and projections are forever the keys to some traders, the current market dynamics have rendered traditional charting techniques virtually obsolete. Here is a chart one such crypto enthusiast offered up to explain the loss of confidence in technical indicators: