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Many in the crypto community come to the conclusion that the crypto winter has ended on the market and a crypto massacre has begun, removing all unprepared participants from the markets.
From the stage of cryptozyme to the stage of crypto-slaughter
“I’m practically bankrupt,” says Jad Fawaz, an Abu Dhabi-based cryptocurrency dealer. “I laugh because there is no point in being too melancholy and too disappointed about this.”
The 45-year-old, who quit his real estate job 12 months ago to focus on buying and selling cryptocurrencies, has seen his assets evaporate in recent months.
“At first I had about 40 different coins in my portfolio, then there were 20, 10, 5, and now there are only two left – this is Bitcoin (BTC) and Ripple (XRP),” he says, “And it seems that I I will die before they recover.”
And there are millions of such crypto-investors who are on the verge of disappointment.
Bitcoin balances on crypto exchanges where retail buyers transact have fallen to around 2.3 million, from a record high of 3.1 million in 2020. Balances on external crypto wallets did not grow at the same rate, which indicates liquidation of positions, and not a withdrawal of coins for storage.
Over the past 12 months, the value of Bitcoin has fallen by 63%, while the total market capitalization of the cryptocurrency has lost $1.63 trillion.
The collapse of the major crypto exchange FTX Sam Bankman-Fried hit another nail in the crypto market.
November marked a $10.16 billion 7-day Bitcoin liquidation as buyers were forced to close their positions. This is the fourth largest loss by this measure, according to Glassnode.
“It’s not a crypto winter anymore, it’s a crypto massacre because the FTX disaster was the domino that brought down so many other corporations,” says Linda Obi, a crypto investor from the Nigerian metropolis of Lagos, who works for blockchain agency Zenith Chain.
“People do not analyze projects, but believe in advertising, various influencers, and ultimately lose money,” she notes.
As a rule, massive disappointment in crypto assets has always foreshadowed their imminent recovery.
Author: Elvir Magzumov, analyst Freedman Сlub Crypto News
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