Over the past seven days, crypto markets have plunged 24%, losing $320 billion in total market capitalization. That figure, which encompasses all cryptocurrencies, fell this week to an 18-month low below $900 billion, marking a 70% decline since November.

The selloff came to a bit of a halt today as markets rallied back to that $900 billion level, but all digital asset prices continue to bleed on a large scale. This is not new, however, as it happened in 2015 and then again in 2018, leading to an 80% crash in prices and a long period of consolidation known as the crypto winter.

Industry leaders, however, ignored the bear market, according to a CNN report on June 15, claiming it’s normal for the course.

I was here before

According to Blockworks co-founder Jason Yanowitz, an 85-90% decline for crypto markets is normal. Bitcoin fell 84% in 2018, falling from its all-time high of $20,000 to $3,200 in mid-December of the same year, following a massive capitulation in late November.

Ethereum’s crash was even bigger, dropping 94% from $1,440 in January 2018 to around $85 in December of the same year. By November 2021, it had reached an all-time high of $4,878; however, it is currently 75% below that level.

Xchange Monster CEO Felix Honigwachs told CNN it’s all about timing, adding that anyone buying and holding below the last cycle peak would still be in place today. Yanowitz continued:

“I really don’t agree with people who say there’s no way to recover from something like this. I think people look at crypto and think it’s weird or it’s not real. If you don’t think crypto is real, you probably think it’s overvalued.

Ethereum lawyer and crypto investor Ryan Sean Adams highlighted the differences between the last cycle and this one.

The macroeconomic fallout from an unprecedented global pandemic and war in the same year hit all markets, not just crypto.

Is the crypto market already at the bottom?

With miners transferring large amounts of Bitcoin to exchanges this week, final capitulation may be imminent, marking the bottom of this market cycle.

Bitcoin miners have been hit with a triple whammy of rising energy prices, falling asset prices, high hash rates and hardship. In order to survive and make it to the next market cycle, they will have to liquidate, which could cause real fear and panic, even if it can’t go much lower.


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