Since its all-time highs in November 2021, Bitcoin’s value has dropped by more than half, causing a massive crash in the cryptocurrency market.
Meanwhile, just as investors were beginning to recover from Bitcoin’s decline, Terra and TerraUSD wreaked havoc on the rest of the market by plummeting much lower.
The Terra ecosystem’s demise unleashed a wave of terror and instability, prompting an early self-off season.
This negative feeling rippled throughout the crypto market, causing investors to withdraw their funds and sell their holdings.
Bitcoin and Ethereum, the two most valuable assets on the market, have lost more than 40% of their value since mid-November 2021, according to industry experts. Bitcoin’s value has plummeted by more than half.
For the past 20 to 23 days, the crypto market cap has fluctuated between US$1.19 trillion and US$1.36 trillion.
At this point, Bitcoin had gained 3.5 percent, while Ethereum had gained roughly US$1.6 percent, which had partly comforted the investors.
However, the cryptos have retreated! Aside from that, investors’ concerns about regulation continue to influence their crypto-buying decisions.
Since November’s high, BTC’s collapse has wiped off around US$600 billion in market value and more than US$1 trillion from the entire crypto market. Turmoil in stablecoins has contributed to the anguish of higher cryptocurrency liquidity.
In This Bear Market, The Most Important Metrics To Consider
A bearish crypto market is something no investor wants to face since it destroys portfolio value and has a high likelihood of causing financial losses to its investors.
However, one of the most advantageous parts of a bearish crypto market is that it allows investors to rethink their investments and conduct additional research into alternative viable ventures that may survive when prices rise again.
The Fear and Greed Index is a data-driven sentiment indicator that clearly displays the crypto market’s pessimistic sentiment.
Since May 8, when the crypto market hit its lowest point, when it lost US$1.7 trillion, the indicator has persistently remained below 20.
Cardano, according to accounts, is still going strong. Cardano continues to rise 19 percent, according to reports, as the Vasil hard fork is set to launch soon.
By mobilising deposits over the decentralised network, the upgrade intends to increase ADA’s scalability and smart contract capabilities.
Major cryptocurrencies like Solana have plummeted far than than experts had predicted. For the past seven months, SOL has been plagued by network problems.
Aside from these concerns, the Tether scenario has been difficult for the crypto sector and its investors.
The re-launch of the LUNA 2.0 protocol hasn’t helped because LUNA users are still unsure about the protocol’s future.
The majority of long-term crypto investors have exited the market or are opting for other controlled, traditional assets.
For the crypto market to rise again, a number of price measures must shift. Experts feel that the research they presented revealed additional drawbacks.
This is mostly owing to the slightly more negative conditions of altcoins, as well as the apparent lack of or loss of enthusiasm in investing in cryptocurrencies from Asian retail markets.
It is clear that crypto bulls must demonstrate far greater capacity in order to attract additional investors to the industry.