On Wednesday evening, Bitcoin was largely flat, but Dogecoin and Ethereum saw gains with the total market value of cryptocurrencies being roughly constant at $1 trillion. After a largely lackluster market month, cryptocurrency ended October slightly higher, setting up what may be a busy November. Many cryptocurrency companies began to struggle as a result of falling bitcoin prices as the U.S. The Federal Reserve scaled back its pandemic-era support.
More than 70% of the recent peaks have been lost by big corporations like Bitcoin, Ethereum and others. The Fed, which has been working relentlessly to control inflation, is on track to announce another rate hike.
Cofounder of “Ethereum killer” Tezos Kathleen Breitman predicts that the current bear market cycle in cryptocurrencies will only worsen. Breitman explains that cheap money “inflated” the most recent bull run.
She added that “a lot of easy money was being poured into the system.” The co-founder of Tezos believes that the value of crypto ventures has increased. She cited the fact that despite a decline in its sales volume compared to 2021, the top NFT marketplace OpenSea is still valued at an astonishing $13.3 billion. “There was a lot of cheap money that went in. Valuations got super sky-high,” Breitman said.
Bear cycle similar to previous cycle?
The analytics company Glassnode compared the bottom of the current Bitcoin market cycle with those from earlier bear markets in its “week on-chain” report on October 31. A double-top rejection from last week’s relief rally appears to have put an end to it. The market was “hammering out a Bitcoin bottom, with almost textbook similarities to earlier cycle lows,” according to Glassnode.
It said that, as in previous cycles, the bear market in bitcoin has resulted in significant financial losses for investors and holders. It was said that the only thing left is a component of timing and investor apathy.
