78 Days: Measuring the Extended Crypto Market Downturn Against Prior Bear Markets

BTC

The crypto economy has shed enormous value over the last three months and the leading crypto asset bitcoin is down more than 46% since it’s all-time high (ATH) at $69,044 per unit. The same can be said for a great number of digital currencies as the so-called crypto bear market has lasted 78 days so far.

78 days into the current downturn, crypto proponents wonder how long the bear market will last

At the time of writing, a large number of crypto proponents are wondering whether or not the current downturn in the crypto economy is a bear market. After a phenomenal 2021, the price of bitcoin fell after hitting $69,000 ATH on November 10, and since BTC’s value has been well below 20% against ATH for an extended period, most assume that it is a bear market.

If we are to count the days between now and BTC’s last ATH, it would be approximately 78 days. Currently, bitcoin is more than 46% down from the $69K ATH and ethereum (ETH) is down 48% lower than its $4,878 ATH.

If we assume that the crypto economy is in a bear market after BTC’s ATH, 78 days is much shorter than the long crypto bear markets of the past. The Bitcoin bear run in July 2013 lasted 89 days and after the ATH in 2013, the following crypto bear market was extended for 406 days.

In 2017, after BTC tapped an ATH at just below $20K per unit, the following bear market lasted 251 days until prices started to turn bullish again. 2017 was fueled by the initial coin offering (ICO) boom, which largely deflated when many of the projects were found to be vaporware.

Challenging the maturity of the crypto industry, the downturn is the second most significant downturn in this halving cycle

This time around, many people believe that the crypto industry has matured a lot and decentralized finance (defi), Web3 and non-fungible token technology (NFT) projects have boomed in the last 12 years. month. While all three have gone on to become billion-dollar industries, crypto proponents don’t know how many of them will actually become strong blockchain foundations.

There’s been significant criticism toward Web3 and more than $60 billion has left the defi economy since November 2021. During the last seven days, NFT sales have dropped 5.73% according to today’s metrics.

It is assumed that the maturity of the crypto industry, its software applications and the current interest in blockchain technology are much more robust than in 2017. Meanwhile, bitcoin has already had a little bear between its ATH d April 2021 and the mid-November ATH of 97 days. All past downturns have been much longer than the current 78-day period.

However, market stats from Glassnode show that the current downturn is the second deepest drawdown in this halving cycle. “Corrections in 2017, and early-2021 were much shallower between 20% and 40%, whilst July 2021 reached a drawdown of -54%,” Glassnode wrote on its Telegram channel on January 23.

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