2022 Bear Market the Worst in Crypto History, Says Glassnode Report

Ethereum transaction profitability continues to languish at levels last seen in January 2019 where investors realize an average loss of -16% in each transaction


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.


SEE ALSO: [WATCH] Bitcoin Price History Bar Chart in the Last 8 Years (November 2014 – May 2022)


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


RECOMMENDED READING: 5 Advantages Bitcoin Has Over Credit Cards


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