The current crypto market is putting to test participants’ trust and confidence in the sector. As reported by Todayq News many institutional investors have predicted the present bear phase to continue, a recent Glassnode report supports the same.
As per the recently published Glassnode report “Week on-chain”, the blockchain analytics firm has conveyed that the ongoing market scenario has trembled the confidence of many Bitcoin holders. The report took into consideration the average increases in the mean inflow volume to exchanges to understand the inclination of investors.
The average deposit size across all major exchanges was found to be increasing in dollar terms as a cycle bottom is formed. The mean inflow volume is a metric to determine the return of crypto to exchanges after investors sell them. It also highlighted the dominance of whales, institutions, and trading firms across exchange deposits.
Further, the report cites this trend to be in the loop since May and also compares it to the bear market of 2018-2019. In 2018, from the $20,000 level, the selloff drove Bitcoin to plunge as low as around $3,000 in December of the same year. The overall bearish trend lasted until 2019. This year, Bitcoin has taken about the same time to plunge by 77% from $60,000 levels in November 2021 to a new cycle low on November 22 at $15,665.
Analysts believe that the current declining trend would continue in the coming months following the same pattern as of 2018 where it took several months for an upward movement after the 2018 crash. Also, it took five weeks for the trend to hit its bottom whereas currently, we are only in the second week.
Additionally, Glassnode points out that the spot price of around $16k implies that it’s the first time since March 2020 that the whales are at an unrealized loss. Last week saw the fourth-largest surge in realized losses with a daily revenue equivalent to $1.45 billion.
Today, Bitcoin has plunged to its 2-year low at $15,665 and is trading at $15,731.20 dropping by 0.18% in a day at the time of writing. It has shrunk by about 23% over the past fortnight.