The crypto market has been remarkably difficult for investors this year, with BTC and ETH prices currently around 65% below their highs. June was the worst month since 2011 for both assets. However, there is reason to be optimistic in Julysince both assets are making profits.
Even so, this year’s reduction was actually the least severe registered.
Although this crypto winter has seen less decline than previous bear markets, it has seen many large capitulations and the restructuring of a market.
Bitcoin and Ethereum have been trading below their respective realized prices since mid-June. The average period to fall below the realized price for historic Bitcoin bears has been 180 days, with the exception of March 2020, when it only took seven days.
We look at the MVRV ratio, which measures changes in market value (MV, spot price) for three types of Bitcoin cohorts, including general market, short-term holders, who generally react to market volatility by spending their coins, and in the long run. holders. We can see that title holders, who are statistically less likely to spend their coins, currently have coins below their base cost.
It is common for all three cohorts to be below the cost base during bear market lows. Thus, Bitcoin could be approaching a potential market bottom.
During, the macroeconomic environment and concerns about cryptocurrencies led venture capitalists to reduce their investments in cryptocurrencies in the second quarter of 2022. A 29% drop in funding for blockchain projects to $6.5 billion in the second quarter, compared to $9.2 billion in the first quarter of 2022 the first fall in two years.
There was also a Staggering 54% drop in mega-round blockchain funding (over $100 million) in the second quarter, rising from $5.6 billion in the first quarter to $2.6 billion in the second quarter.
Source: CB Insights
Start-ups developing the Web3 technology received 57% of this fundingcompared to 68% in the previous quarter.
It is fair to conclude that 2022 was a major reset in market expectations, major deleveraging and hopefully the beginning of new foundations which will allow even larger structures to be built on top of them.
Summary of weekly winners
Ethereum Classic added another 50.7% in the last seven days. Last week Lido DAO (LDO) added another gain of 51.65%.
Among the less popular tokens, ROSE, the native token of the Oasis network, gained 50.85% over the past 7 days, outperforming BTC by more than 43.10%.
Qtum (Qtum) also performed well over the past week and month, recording gains of 48.29% and 64.3%, respectively.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be considered as financial advice or investment recommendations. Every investment and trading move involves risk and it is everyone’s responsibility to do their research before making an investment decision.
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