The industry experts remain unfazed by the 70% crypto market crash with some seeing it as a stop to the free-fall but some do expect another leg down so let’s read more about it in today’s latest cryptocurrency news.
Over the past week, the markets dropped by 24% and shed $320 billion from the total market cap this is a figure which encompasses all cryptocurrencies and dropped the 18-month low below the $900 billion this week and a 70% drawdown since November. The massive sell-off paused a little today with the markets recapturing the $900 billion level but the digital asset prices are bleeding on a macro scale. However, this is nothing new and it happened in 2015 and then again in 2018 which resulted in an 80% collapse in prices.
This isn’t 2018.
In 2018 we didn’t have product market fit. DeFi was nothing. NFTs a blip. Ethereum had no path to scalability or staking.
In 2022 we have all this. We’ve just been punched down by macro and self-inflicted leverage wounds.
I was fearful then.
I’m not now.
— RYAN SΞAN ADAMS – rsa.eth 🦇🔊 (@RyanSAdams) June 15, 2022
The industry experts however shrugged off the bear market and claimed it is on par with the course. According to blockwork co-founder Jason Yanowitz, the drawdown for the markets is normal and BTC dropped 84% from the ATH of $20,000 to a bottom of $3200 in December of the same year. Ethereum’s collapse was even bigger as it dropped 94% from the $1440 level in 2018 to $85 in December of the same year. By November 2021, it reached a high of $4878 but it is now 75% below this level. The CEO of Xchange Monster Felix Honigwachs said that it was all about timing and added that anyone that purchased and held below this last cycle peak will be up today:
“I really disagree with the folks who say there’s no way to recover from something like this. I think people look at crypto and think it’s weird or that it’s not real. If you don’t think crypto is real you probably think it’s overvalued.”
Bitcoin Fear and Greed Index is 7 – Extreme Fear
Current price: $22,469 pic.twitter.com/H5ePNB0vAF
— Bitcoin Fear and Greed Index (@BitcoinFear) June 15, 2022
Ethereum advocate and investor Ryan Sean Adams pointed out the differences between the last cycle and this one while the macroeconomic fallout from the global pandemic battered all markets and not just crypto. With the miners moving large amounts of BTC to exchanges, the final capitulation could be imminent. BTC miners were also hit hard by the rising energy prices and the high hash rates so in order to survive and make it to the next market cycle, they will need to liquidate and cause real fear and panic.
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