CRYPTOVERSE: THE BLANKET FOR BITCOIN WINTERS?
The limited history of Bitcoin is not much of a guide to the crypto winter, which we describe as a long process of a month or more.
There have been five since 2017 and three since 2021. Two accidents last year lasted 14 and 10 weeks and caused bitcoin to lose 45% to 47%. If they were normal, the recent decline in bitcoin - 36% spent eight weeks - is still a roadblock.
"Bitcoin is not just a magnet for store investors right now. No one really sees what bitcoin might offer 10 times (return)," said Joseph Edwards, head of financial strategy at fund management company Solrise Finance.
Indeed, a large base does not support the current asset class which is now seen as volatile, volatile - and risky in the face of inflation. As concerns about rising international standards and national politics bring U.S. stocks closer. next to confirming the bear market, the secret money is not on anyone's shopping list.
Yet even in the icy desert, there are some indications that the crypto king is planning his return.
Bitcoin is gaining momentum in the entire crypto market, for example, in its position of providing comfort to investors fleeing altcoins as stablecoins are considered a major risk after the collapse of TerraUSD in early May.
The dominance of Bitcoin, which is the average market share of all cryptocurrency markets, has risen sharply in seven months by more than 44% as its price has plummeted.
"Institutional investors in particular are fleeing to a secure, to a certain extent, in bitcoin, which is widely accepted by the institution," said Marcus Sotiriou, an asset analyst at UK GlobalBlock.
Last week, futures bitcoin saw their biggest net position long since the contract was introduced in 2018, CFTC data showed, indicating increasing traders' positioning for cryptocurrency inflation.
Bitcoin has lost half of its value since Nov. 10 maximum value of $ 69,000. This week, it is playing lovely for $ 30,000, after touching $ 25,401 for 17 months on May 12. It remains the largest digital asset with a market cap, but the market value of all cryptocurrencies now stands at $ 1.3 trillion, below of $ 3 billion. top billion in November.
Coinglass bitcoin data platform The indicator of market fears and greed - where 0 indicates extreme fear and 100 extreme greed - is around 13.
Bilal Hafeez, CEO of research firm Macro Hive, pointed to $ 2,300 and $ 2,500 as significant levels and warned that failure to hold more than any of those marks in the near future would be a bearish signal.
The crypto market is sad.
The total market capitalization of all cryptocurrencies in major trading has dropped to $ 18.4 billion since Monday - less than half of the $ 48.2 billion seen on May 14, which was the highest volume of 2022, according to the news and research center Block.
Blockchain analytics firm Glassnode said on May 9 that bitcoin at $ 33,600 puts 40% of investors underwater in their hold.
"A lot of people are left wondering what to do with their coins - just keep holding on to a lovely life or losing books and move on?" said Lindsey Bell, a financial strategist at Ally Invest.
"It's a good reminder that crypto probably should not be more than, say, 1-2% of your portfolio."