Analytics
Reading time: ~2 m
Analysts from CryptoCompare spoke about the current state of the cryptocurrency industry. They recalled that Bitcoin (BTC) has fallen in price by 70% since reaching a peak of $69,000 in November 2021. The current bear market may seem more brutal than previous ones, given the collapse of Terra (LUNA), Three Arrows Capital and Celsius Network (CEL), experts say. However, do not draw premature conclusions.
According to the data, small and large investors regularly purchased leading crypto assets as prices fell, contrary to the ongoing selling trend and the previous bear markets seen from November 2013 to December 2014, and also from December 2017 to December 2018.
The experts noted that unlike the last bear market, when all BTC holders of various sizes panicked and sold their virtual assets, this bear market saw constant accumulation. Analysts emphasized that wallets holding more than 10,000 BTC have significantly replenished their portfolios. This is likely due to the wider institutional adoption of digital currencies.
Since September 20, 2022, nine new addresses have been generated holding between 10,000 BTC and 100,000 BTC, according to Santiment data. These wallets purchased about 190,000 BTC in seven weeks, worth about $3.8 billion.
According to experts, another positive conclusion from the market fall is the decrease in Bitcoin volatility. The annual realized volatility for the past year averaged 63%. According to CryptoCompare, this value was previously 79% when looking at the history of previous bear market cycles.
Realized volatility measures the daily changes in the value of a virtual asset over a given period of time. This indicator of the options market reflects the expectation of traders regarding the price turbulence of BTC quotes in the coming days, weeks or months.
Earlier, the editors of Crypto.ru reported: a market expert named an important support level for BTC.
#Experts #told #state #cryptocurrency #market
