In the last seven days, the crypto markets have plunged 24%, losing $320 billion of the total market capitalization. That figure, which encompasses all cryptocurrencies, fell to an 18-month low below $900 billion this week, marking a 70% reduction from November.
The sell-off has paused a bit today as markets rallied back to that $900bn level, but all digital asset prices are still bleeding out on a macro scale. However, this is nothing new as it happened in 2015 and then again in 2018, resulting in an 80% crash in prices and a long period of consolidation known as crypto winter.
However, industry leaders have shrugged off the bear market, according to a June 15 CNN report, saying it’s normal.
I have been there before
According to Blockworks co-founder Jason Yanowitz, an 85-90% drawdown for crypto markets is normal. Bitcoin fell 84% in 2018 from its all-time high of $20,000 to a low of $3,200 in mid-December of the same year, following a massive capitulation event in late November.
Ethereum’s crash was even more significant, dropping 94% from $1,440 in January 2018 to around $85 in December of the same year. By November 2021, it had risen to an all-time high of $4,878; however, it is currently 75% below that level.
Xchange Monster CEO Felix Honigwachs told CNN it was all about timing, adding that anyone who bought and held below last cycle’s peak would still be up today. Yanowitz continued:
“I really don’t agree with people who say there’s no way to recover from something like this. I think people look at cryptocurrencies and think they’re weird or not real. If you don’t think crypto is real, you probably think it’s overvalued.”
Ethereum advocate and cryptocurrency investor Ryan Sean Adams pointed out the differences between the last cycle and this one.
This is not 2018.
In 2018 we had no market fit for products. DeFi was nothing. NFT is a problem. Ethereum had no path to scalability or participation.
In 2022 we have all this. We just got hit by macro and self-inflicted crowbar wounds.
So I was afraid.
i’m not now
— RYAN SΞAN ADAMS – rsa.eth 🦇🔊 (@RyanSAdams) June 15, 2022
The macroeconomic fallout of an unprecedented global pandemic and war, all in the same year, have hit all markets, not just cryptocurrencies.
Has the crypto market bottomed yet?
With miners moving large amounts of Bitcoin onto exchanges this week, the final capitulation could be imminent, marking the bottom of this market cycle.
Bitcoin miners have been hit by the triple whammy of rising energy prices, falling asset prices, and high hash rates and difficulty. In order to survive and make it to the next market cycle, they will need to liquidate, which could cause real fear and panic, although it can’t be much lower.
Bitcoin Fear and Greed Index is 7 – Extreme Fear
Current price: $22,469 pic.twitter.com/H5ePNB0vAF
— Bitcoin Greed and Fear Index (@BitcoinFear) June 15, 2022
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This post Industry Insiders Unfazed by 70% Crypto Market Drop
was published first on https://cryptopotato.com/industry-experts-remain-unfazed-by-70-crypto-market-crash/