Written by Marcos Sotero, Analyst The UK Digital Asset Broker GlobalBlock
Bitcoin plunged below $20,000 briefly this morning, while the total cryptocurrency market cap fell to just under $900 billion, from a high of $3 trillion last year. A new report from Glassnode Insights claims that the current bear market isa bear of historical proportions,It highlights that “2022 could reasonably be said to be the most significant bear market in the history of digital assets.” “
Glassnode data such as Market Cap and Realized Value Oscillator (MVRV, which is a ratio between market capitalization and realized value) can give us insight into how this bear market compares to previous bear markets. Using MVRV, we can display the relative inflow/monthly inflow of capital into bitcoin. With this indicator at -2.73 standard deviations (SD) from the mean, we can see that Bitcoin is currently experiencing the largest capital inflow event in history.
As mentioned earlier, the industry needs regulatory clarity to enter the next wave of institutional money. British Member of Parliament Matt Hancock He called for “liberal” regulation of cryptocurrency, claiming that no country could stop the cryptocurrency revolution. “I hate the sponsored idea of regulators telling people what they can and can’t do with their money,” Hancock said. Hancock touched on the Terra fiasco which served as an example of “market maturation,” highlighting how there are stablecoins with lower risk. His claims are consistent with the idea that the UK has the power to choose whether the “cryptocurrency revolution” will begin in the UK elsewhere.
I agree with Hancock’s line of thought and that we should compare this period in the crypto space to the Internet in 2001 – even though the dotcom bubble collapsed in 2001, the Internet has never lost its credibility as a technology.
#bear #historical #proportions