The year 2022 demonstrated the various characteristics of the crypto space as well as the market participants, such as short-term holders, long-term holders, whales, as well as strong and weak hands. While the strong hands continued to accumulate wealth, the weak hands continued to extract profits at every turn.
At the beginning of the year 2022, the market cap was trading around $2 trillion. However, the deadly market crash led by the LUNA-UST crisis dragged the levels close to $1 trillion. Unfortunately, the levels have fallen below the current levels and show the possibility of bottoming in the coming days.
Well, there is speculation that the sharp declines were led by weak hands, which may be gone by 2022.
According to santiment data, weak hands have been liquidating their assets for small gains to chase short-term bounces. This is mainly due to the social dominance of Bitcoin and Ethereum. According to the data, the rate of market participants discussing crypto on social media platforms has dropped sharply.
Currently, BTC dominance has fallen below 14% while ETH is below 8%. The price of BTC and the entire crypto space can turn bullish only if these rates exceed 20%. As a result, long-term traders are quite confident in the next rally after Bitcoin regains mainstream attention. Therefore, a nice rally can ignite anytime in the coming months.
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This post Weak hands could be gone by 2022; Here’s who could lead the next bullfight!
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