The crypto market is having bad days at this time. The market cap of cryptocurrencies had gone below one lakh crore recently. The largest cryptocurrency bitcoin and the second largest currency ethereum are trading more than 70 percent below their all time highs. According to a report released in Crypto Market, the fall of 2022 is the worst bear market in the history of crypto.
A report released by the blockchain analytics firm Glassnode said that as this financial pain began, a large number of investors have started selling their holdings. People are cutting their positions in loss.
Bitcoin is the largest currency, down 73% from its high, down 75% to 84% from its November all-time high. In the fall of the year 2019-20 i.e. bear remained for about 260 days, while the 2015 bear market lasted for 410 days. This time after a fall of 75 percent, it is estimated that this bear market can last from 227 days to 435 days. This beer market is historically strong.
Glassnode has charted out that bitcoin has moved below its 200-day moving average (DMA) and it matches the bear market. It is worse when it is trading below it.
According to the report, based on chain analysis, the fundamental valuation model of bitcoin has changed, which is based on actual coin holdings and spending patterns. This is not a good sign. The report further stated that 2022 has been a tough year for digital assets. The bear market has caused a lot of damage to both bitcoin and ethereum. According to the report, this bear market is the worst bear market ever seen on every scale. This year has also been very bad in terms of market cap. The crypto market cap has shrunk by more than half since the all-time high.