The last seven days have been the most uneventful days for the cryptocurrency market. The ongoing crypto winter has turned into a full-blown crypto blizzard, with losses touching the depths of ocean floors.
As per data from CoinMarketCap, on 12 June, the total market cap for the cryptocurrency market stood at $0.598 trillion which then trickled down to $0.501 trillion on 18 June. Furthermore, the 24-hour trading volume of the cryptocurrency market also stood at $0.35 trillion, at the time of writing.
The great crypto divide
The performance of the market has disappointed many investors and traders across the board. During a clip from the Bankless podcast, co-hosts Ryan Sean Adams and David Hoffman discussed how one can scalp opportunities in crypto winter.
Ryan took the bear market in a positive stride and he considers the ongoing crypto winter as a blessing in disguise. While speaking of the same, he stated,
“I think it’s a total gift to be able to buy the future, things like Ethereum at a low price point right now.”
Furthermore, David shared his views on people liquidating their assets to cut off their losses. Hoffman asserted,
“People are getting liquidated because of high-interest rates. We are returning to fundamentals, this is what bear markets do. We go back down to the basement and we rebuild the foundation stronger and stronger.”
Despite Ryan and David being bullish about the crypto market, opinions and views on Twitter remain divided considering the latest drawdown.
In this regard, crypto analyst and investor Miles Deutscher took to Twitter to explain the domino effect that hedge funds like 3AC are facing at the moment. He also pointed out that the crypto market is yet to witness the worst amid 3AC facing insolvency.
We’re witnessing the biggest leverage reset in crypto history.
One of crypto’s largest VCs 3AC is facing insolvency, which could spell disaster for the entire space.
🧵: The ULTIMATE thread on what led to the downfall of 3AC, and what it means for the future of crypto. 👇
— Miles Deutscher (@milesdeutscher) June 17, 2022
Furthermore, Bitcoin analyst Will Woo compared the current situation of the market with the deleveraging during the COVID-19 pandemic.
Hash ribbons visualise miner collapse.
Bottoms normally coincide with miners capitulating. Weak miners are bankrupted adding to sell pressure in a cascade. Ribbon then recovers (green circles = bottom).
Looks like we’re deleveraging RN, similar to COVID event (red circles). pic.twitter.com/jjl2F8VNrt
— Willy Woo (@woonomic) June 17, 2022
Notably, at press time, the king coin slipped below the $20k mark and stood at $19,374 post witnessing a 33.99% drop in the last seven days. On the other hand, the altcoin king, Ethereum stood at $1,005 after trickling down by approximately 39.82% at press time. The altcoins, too, don’t seem in the best of spirits.
ApeCoin Shed $2.5 Billion From Its Market Cap In May – Investor Appetite Fading?
The month of May’s crypto market disaster did not fail to bring down along with it one of the “rising stars” in the crypto space, ApeCoin.
ApeCoin price has shown a robust performance in the face of the crippling crypto market crash. However, the bulls were still able to lift APE by about 50% higher from the coin’s low at $3.11.
As of this writing, APE was trading at $4.25, up 4.1% in the last seven days, and selling just below the newly established swing high at $4.35.
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ApeCoin Market Cap Down By Half
Thursday’s data from Coingecko indicates that ApeCoin is among the top 50 crypto assets by market capitalization, having closed May with a market value of around $1.27 billion.
As a result of the decline in the value of other digital currencies, this amount appears large, but it reflects a 56 percent decline from its market value. APE’s high trading volume of $3.37 billion as of May 1 translated to a market value in excess of $4.55 billion.
A high volume of liquidation by coin holders rose on May 1 and accelerated from May 9 to 13, contributing significantly to the decrease in APE’s market value.
Experts say this is because of the broader geopolitical and global climate, including uncertainties in the ongoing war in Ukraine, among other factors.
Factors Contributing To APE Price Decline
It’s not just in the crypto field that things are not looking bright. Living expenses are growing, interest rates are rising, a recession is approaching, and inflation is skyrocketing. The US S&P 500 is currently in a bear market, and stock markets are shaky as well.
APE total market cap at $1.27 billion on the daily chart | Source: TradingView.com
According to a number of market analysts, these are some of the causes chipping away at the value of APE.
On May 1, APE began at $20.02, achieved an intraday high of $20.04, dropped 21 percent to an intraday low of $15.69, and ended at $15.97.
As a result of losing more than one-fifth of its value on the first trading day of the month, APE was unable to recover and continued to fall throughout the rest of May, reaching new lows.
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APE began trading on May 1 at $20.02, achieved a monthly top of $20.04 on the same day, hit a monthly low of $5.25 on May 11, and finished the month at $6.76.
This represents a 66 percent decline between the opening and closing prices of APE in May.
Featured image from Gravitate.news, chart from TradingView.com
By The Numbers: The Worst Bitcoin Bear Markets Ever
Bitcoin is now officially in another bear market after the crash that rocked the market last week. After falling more than 70% from its all-time high, investors across the space had started to retreat from the digital asset due to this new price trend. However, trends like these are not new for bitcoin. Although the present market may seem worse than previous ones due to it still ongoing, there have been some brutal bear markets in the past.
A Blast From The Past
It can often be helpful to take a look at the previous market cycles for bitcoin to see that this is nothing out of the ordinary. Yes, the bull and bear trends of this market have deviated from what has been recorded in history but it still remains very similar to what has been recorded in the past.
For bitcoin, the alternation between bear and bull markets has always been part of the experience. It has been through several of these boom-bust cycles in its 13 years in existence and it is not expected to change anytime soon.
Related Reading | Over $250 Million In Liquidations As Bitcoin Recovers Above $20,000
Bitcoin has so far lost about 73% from its most recent cycle peak but it is not the first time that something like this is happening. Looking back to the November 2013 market shows that bitcoin had actually continued to decline until it finally ended its 407-day losing streak with a bottom at 85% of its all-time high value. This had marked the end of that stretched-out bull market.
For those in the market, the 2017 bull-bear cycle is fresher in their minds compared to 2013. However, like in 2013, the drawdown was just as brutal, although lasting a shorter time. What had lasted for approximately a year had ended with poor performance of an 84% bottom.
BTC bear markets are always brutal | Source: Arcane Research
Since the digital asset continues to maintain this trend closely, it is expected that the drawdown will continue. Going by the previous two examples, one can easily draw a conclusion that a historical movement will see bitcoin bottom out in the mid -80s. Thus, the bottom is most likely not in and the market is likely to see BTC at $11,000 before the expected market bottom in late 2022.
Will Bitcoin Follow?
While looking at previous movements can help point a direction where the price of bitcoin might end up, there are always new information and events that can heavily impact it. For one, the macroeconomic atmosphere has been a big player in the movement of the digital asset in recent terms. As fears around inflation, fed rate hikes, and less liquidity circle the market, bitcoin had been directly impacted by this.
BTC enters bear market | Source: BTCUSD on TradingView.com
This has led to a more intertwined market when it comes to bitcoin and the broader financial markets. As the cryptocurrency space grows larger, it is experiencing greater implications from the Fed decisions, stock market performance, U.S. elections, and crypto regulations that have been ramping up.
Related Reading | Cardano Vasil Hard Fork Launch Date Set, Time To Buy The News?
Nevertheless, the long-term play for bitcoin remains the best bet. As emotions run high, bitcoin veterans take to accumulating and hibernating while waiting for winter to pass. If history is anything to point to, by the next bull market, the price of bitcoin could reach as high as $200,000.
Featured image from Forbes, charts from Arcane Research and TradingView.com
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‘Bitcoin Is Dead’ Google Searches Skyrocket, Bitcoin Obituaries Records 15 Deaths This Year
According to the Bitcoin Obituaries list, bitcoin has died 15 times in 2022, and the last obituary written about bitcoin’s death was on June 18, in a recent statement that said: “Bitcoin Will Not Recover.” Interestingly, Google Trends data shows that the search phrase “bitcoin is dead,” is estimated to hit an all-time high this week.
The Old Saying ‘Bitcoin Is Dead’ Comes Back to Life
In recent times, you may have heard the phrase “bitcoin is dead,” or something similar. A great number of people truly believe that bitcoin is dead while many believe the crypto asset is the future of money. The past two weeks have been gruesome for bitcoin as prices dropped to a low of $17,593 per unit.
The analytics company Glassnode shows the losses during the last three days have been massive. “The last three consecutive days have been the largest USD denominated Realized Loss in bitcoin history,” Glassnode detailed. “Over $7.325B in BTC losses have been locked in by investors spending coins that were accumulated at higher prices.”
Meanwhile, two days ago, the Bitcoin Obituaries list hosted on 99bitcoins.com indicates that bitcoin has recorded its 15th death of the year. The obituary statement was written by the gold bug and economist Peter Schiff via Twitter. Schiff has always thought bitcoin is worthless and he has said multiple times that BTC’s price is headed to zero. Schiff’s recent bitcoin obituary called “Bitcoin Will Not Recover,” says the current crypto crash is just the beginning. Schiff’s obituary statement says:
Long-term bitcoin HOLDers aren’t worried as they’ve been through 73% declines before. But previous declines didn’t involve anywhere near the total market cap lost during this decline, nor did they involve massive leverage. This crash is just beginning. Bitcoin will not recover.
‘Bitcoin Is Dead’ Google Searches Estimated to Rise Significantly This Week
Bitcoin.com News recently reported on Schiff’s bitcoin opinion last week when he said crypto advocates’ “need to sell bitcoin to pay the bills will only get worse as the recession deepens.” Google Trends data shows that there’s been an awful lot of “bitcoin is dead” searches and this week’s GT data score for the phrase “bitcoin is dead” is expected to hit an all-time high.
The last time GT data had shown the search phrase reach a high was during the Terra blockchain fiasco, and during the week of May 8-14, the search phrase “bitcoin is dead” reached a 38 out of 100. So far, according to the Bitcoin Obituaries list hosted on 99bitcoins.com, 2022’s list beats 2020, 2012, 2011, and 2010.
2021 saw approximately 47 obituaries and 2020 saw only 14. The lowest number of deaths was in 2010 with a single obituary called “Why Bitcoin can’t be a currency,” which was published on December 15 that year. To date, bitcoin has died 455 times so far according to the Bitcoin Obituaries list.
Tags in this story
99bitcoins, Bear Market, Bitcoin, Bitcoin (BTC), Bitcoin bears, Bitcoin bulls, Bitcoin Dead, Bitcoin Eulogy, Bitcoin Obituaries, Bitcoin Price, BTC death, Google Trends Data, Independent author, Market Carnage, Markets, Peter Schiff, Prices
What do you think about the ‘bitcoin is dead’ statement and the Bitcoin Obituaries list? Let us know what you think about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
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