A Bear Of Historic Proportions

Bitcoin BTC/USD fell below $20,000 briefly this morning, whilst the total crypto market cap fell to below $900 billion, from a high of $3 trillion last year. A new report from Glassnode Insights claims that the current bear market is “a bear of historic proportions,” and highlights that “it can reasonably be argued that 2022 is the most significant bear market in digital asset history.”

Glassnode data such as the market value and realized value oscillator (MVRV, which is a ratio between Market Value and Realised Value) can give us an insight into how this bear market compares to previous bear markets. With the MVRV, we can view the relative monthly capital inflow/outflow into Bitcoin. As this indicator has reached -2.73 standard deviations (SD) from the mean, we can see that Bitcoin is currently experiencing the largest capital outflow event in history.