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Cryptocurrency analyst and creator of the DataDash channel Nicholas Merten commented on the current situation in the digital asset market. The expert noted that he positively assesses the current state of the industry, stressed that the segment is going through a large-scale stage of restructuring.
The expert emphasizes that cryptocurrencies have a bright future, but many underestimate the global situation. The damage done by FTX, Celsius, Three Arrows Capital and Terraform Labs has left an indelible mark on the industry. In addition, the macroeconomic component should also be taken into account, since many countries are struggling with rapid inflation, and supply chains have not fully recovered after the coronavirus pandemic.
Throughout 2022, the digital asset space has been going through some really tough times, with some big companies even collapsing. According to the expert, investors need to understand that the stage of the long-term bullish trend is over.
Unfortunately, the digital asset industry needs to prepare for new challenges, and the current bullish trend in the market is only a local correction within the overall bearish trend.
Earlier, the editors of Crypto.ru reported: the development of a bullish trend in the market allowed bitcoin to strengthen its position in the ranking of major assets by capitalization. It is noteworthy that Bitcoin has overtaken many financial structures in this regard. As of January 24, the capitalization of the flagship crypto asset is estimated at $443 billion. According to this indicator, BTC has overtaken such giants as JP Morgan and Bank of America.
Leadership in the ranking is still held by gold, Apple and Saudi Aramco. However, experts emphasize that cryptocurrencies are very different from assets from the traditional finance segment and their value is not supported by anything.
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