A report by crypto analytics service, Glassnode, finds that the current market downturn is the worst in history.
According to Glassnode:
“With the current drawdown reaching -73.3% below the Nov-2021 ATH, and taking a duration between 227-days and 435-days, this bear market is now firmly within historical norms and magnitude,”
– Glassnode
In mid-June 2022, Bitcoin dropped below $23,000, which was the first it dropped below that figure since December 2020, as the market cap dropped below $1 trillion.
The price of bitcoin would drop further when it fell below the $18, 000 mark, and at one time even going as low as $17, 600.
The $BTC downturn is well illustrated by Glassnode which considers a bunch of statistics and observations:
- Prices have drawndown -73.3% below the ATH, which is coincident with the upper bound of previous bear market lows
- Top-to-bottom duration is between 227 and 435 days, depending on where the bear market is determined to have commenced
- Deviation below the 200-day moving average is so large that only 2% of trading days have been worse off
- The market has seen the largest monthly decline of the Realized Cap in history on a statistical basis
- The above supported by spending behavior which has locked in both absolute and relative losses that are so large, that only 3.5% of trading days have seen larger capital outflows
- The ratio between Transfer Volume in Loss vs Profit has reached historically high levels, synonymous with a deeply distressed investor base
When it comes to $ETH, prices fell below $1,200 for the first time in over a year before further dropping below $1,000.
Glassnode summarises the 2021 – 22 Ethereum bear market statistics as follows:
- Ethereum has seen a peak drawdown of -79.5% from its ATH placing this sell-off within the upper-bound of previous bear market floors
- $BTC dominance is commanding the gravity of capital flows which historically has signalled further $ETH under-performance in following months
- Ethereum Value captured per Byte is suggesting deteriorating capital efficiency and alludes to a potential further 50% decline if $0.15/byte levels are revisited. Earlier recovery would indicate improved value capture mechanisms by the Ethereum network
- The last 6 months has seen the 2 largest statistical capital destruction events in Ethereum history worth a combined $27.6B in net outflows from the Realized Cap
- The MVRV for both ETH and ETH 2.0 are experiencing significant drawdowns signalling that the average $ETH holder is holding large unrealized losses
- Ethereum transaction profitability continues to languish at levels last seen in January 2019 where investors realize an average loss of -16% in each transaction
