The last seven days have been the most uneventful days for the cryptocurrency market. The ongoing crypto winter has turned into a full-blown crypto blizzard, with losses touching the depths of ocean floors.
As per data from CoinMarketCap, on 12 June, the total market cap for the cryptocurrency market stood at $0.598 trillion which then trickled down to $0.501 trillion on 18 June. Furthermore, the 24-hour trading volume of the cryptocurrency market also stood at $0.35 trillion, at the time of writing.
The great crypto divide
The performance of the market has disappointed many investors and traders across the board. During a clip from the Bankless podcast, co-hosts Ryan Sean Adams and David Hoffman discussed how one can scalp opportunities in crypto winter.
Ryan took the bear market in a positive stride and he considers the ongoing crypto winter as a blessing in disguise. While speaking of the same, he stated,
“I think it’s a total gift to be able to buy the future, things like Ethereum at a low price point right now.”
Furthermore, David shared his views on people liquidating their assets to cut off their losses. Hoffman asserted,
“People are getting liquidated because of high-interest rates. We are returning to fundamentals, this is what bear markets do. We go back down to the basement and we rebuild the foundation stronger and stronger.”
Despite Ryan and David being bullish about the crypto market, opinions and views on Twitter remain divided considering the latest drawdown.
In this regard, crypto analyst and investor Miles Deutscher took to Twitter to explain the domino effect that hedge funds like 3AC are facing at the moment. He also pointed out that the crypto market is yet to witness the worst amid 3AC facing insolvency.
We're witnessing the biggest leverage reset in crypto history.
One of crypto's largest VCs 3AC is facing insolvency, which could spell disaster for the entire space.
🧵: The ULTIMATE thread on what led to the downfall of 3AC, and what it means for the future of crypto. 👇
— Miles Deutscher (@milesdeutscher) June 17, 2022
Furthermore, Bitcoin analyst Will Woo compared the current situation of the market with the deleveraging during the COVID-19 pandemic.
Hash ribbons visualise miner collapse.
Bottoms normally coincide with miners capitulating. Weak miners are bankrupted adding to sell pressure in a cascade. Ribbon then recovers (green circles = bottom).
Looks like we're deleveraging RN, similar to COVID event (red circles). pic.twitter.com/jjl2F8VNrt
— Willy Woo (@woonomic) June 17, 2022
Notably, at press time, the king coin slipped below the $20k mark and stood at $19,374 post witnessing a 33.99% drop in the last seven days. On the other hand, the altcoin king, Ethereum stood at $1,005 after trickling down by approximately 39.82% at press time. The altcoins, too, don’t seem in the best of spirits.