2022 Is The Worst Bear Market In Crypto History, On-Chain Data Shows

Zinger Key Points
  • The market has recorded the largest ever monthly decline in realized cap, coupled with exceptionally large relative and absolute losses.
  • “Only 3.5% of trading days have seen larger capital outflows.”

A number of on-chain metrics show that 2022 has turned out to be the worst bear market Bitcoin BTC/USD has ever seen.

What Happened: In the latest edition of its weekly on-chain data analysis, Glassnode described the year-to-date period as “the most significant bear market in digital asset history.”

The report noted that both Bitcoin and Ethereum ETH/USD have traded below their previous cycle all-time highs for the first time in history.

“Deviation below the 200-day MA is so large, that only 2% of trading days have been worse off,” stated the analysts.

The market has recorded the largest ever monthly decline in realized cap, coupled with exceptionally large relative and absolute losses.

“Only 3.5% of trading days have seen larger capital outflows.”

The report also found that spot prices are trading at an 11.3% discount to the realized price, meaning that the average market participant is now underwater on their position.

When evaluating market value to realized value (MVRV) over time, Glassnode found that spot prices traded below realized prices only 604 days out of 4,160 daily closes.

See Also: IS BITCOIN A GOOD INVESTMENT?

“Many on-chain and market performance metrics have reached historically, and statistically significant lows … Even under this relative and statistical framework, we can largely confirm the severity of the 2022 bear market,” concluded the report.

Posted In: GlassnodeCryptocurrencyNewsMarkets

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.