The year 2022 demonstrated the diverse features of the crypto space as well as market participants such as short-term holders, long-term holders, whales, as well as strong and weak hands. While the strong hands continued to amass wealth, the weak hands continued to extract profit at every turn.
At the beginning of the year 2022, the market capitalization was trading around $2 trillion. However, the fatal market crash caused by the LUNA-UST crisis pulled the level closer to $1 trillion. Unfortunately, the level has currently dipped below the levels and reveals the possibility of a further downside in the coming days.
Well, the steep drops are speculated to have been led by the weak hands, who may be wiped out in 2022.
According to sentiment data, the weaker arm is liquidating its assets to make small profits and thus are chasing a short-term bounce. This is mainly due to the social dominance of Bitcoin and Ethereum. According to statistics, the rate of market participants discussing crypto on social media platforms has dropped drastically.
Presently, the BTC dominance has dropped below 14% while that of ETH is below 8%. The BTC price and the entire crypto space may turn bullish only if these rates surge beyond 20%. As a result, long-term traders are fairly confident about the upcoming rally after Bitcoin regains mainstream attention. Hence, a fair upswing may ignite at any moment in the next couple of months.
