Investors and traders in the cryptocurrency market thought that there could be nothing worse than the Terra crash of 9 May. Little did they know that the month of June had something much worse in store. For instance, the market cap, once well clear of $2 trillion, fell below the $1-trillion mark.
Source: Coinstats
Ethereum: Altcoin king no more?
At press time, Ethereum [ETH] had fallen by over 38% in the last seven days as per data from CoinGecko. Furthermore, as per a tweet published by Glassnode, the exchange netflows for ETH didn’t seem to be at their best.
The total exchange netflows stood at +25.3 million. The positive exchange netflow, thus, acts as an indication that people are trying to cut their losses by trying to sell their tokens.
? Daily On-Chain Exchange Flow#Bitcoin $BTC
➡️ $1.7B in
⬅️ $2.1B out
? Net flow: -$419.7M#Ethereum $ETH
➡️ $778.6M in
⬅️ $526.3M out
? Net flow: +$252.3M#Tether (ERC20) $USDT
➡️ $611.2M in
⬅️ $494.5M out
? Net flow: +$116.7Mhttps://t.co/dk2HbGwhVw— glassnode alerts (@glassnodealerts) June 19, 2022
Additionally, the number of addresses in profit has also hit an 18-month low. As per data from Glassnode, the number of addresses in profit stood at 42,172,680 as of 19 June – Lower from a figure of 42,449,250 on 18 June.
? #Ethereum $ETH Number of Addresses in Profit (7d MA) just reached a 18-month low of 42,172,680.607
Previous 18-month low of 42,190,449.250 was observed on 18 June 2022
View metric:https://t.co/9t2b8JZ83s pic.twitter.com/iZqlYxCWGT
— glassnode alerts (@glassnodealerts) June 19, 2022
The MVRV ratio for the altcoin also witnessed a significant decline and stood at 0.69, at the time of writing. Also, the NVT ratio flashed a reading of 28.94.
Source: Glassnode
Source: Glassnode
Ethereum: The coin of small holdings?
The number of wallets/addresses holding at least 10 and 100 ETH tokens witnessed a spike given the alt’s significant drop. At the time of writing, the number of addresses holding 10 ETH tokens stood at 296,797. Also, the number of addresses holding 100 ETH tokens stood at 44,124.
Given the number of addresses holding on to a small amount of tokens, this can be considered as a move towards the positive.
The great expert divide…
In light of the disappointing performances of most cryptos, experts from the cryptocurrency and traditional markets seem to be divided in their approach.
On such expert happens to be stock broker and ardent opponent of Bitcoin, Peter David Schiff. He took to Twitter to share his recent views on the market.
Now that #Bitcoin has collapsed below $20K and #Ethereum below $1K, at least one person on @CNBC should apologize to their viewers for all the one-sided coverage and bad investment advice. As Bitcoin plunged 73% and Ethereum 83%, CNBC pumped #crypto non-stop the entire way down.
— Peter Schiff (@PeterSchiff) June 18, 2022
However, in a recent interview with Insider, businessman Kevin O’Leary stated that he doesn’t plan on selling his cryptocurrencies despite the ongoing bear market.
“Long term you just have to stomach it. You have to understand you’ll get volatility, and that some projects aren’t going to work.”
Commenting on the Terra debacle, O’Leary also argued that crashes in the crypto-world can teach investors caution. They can help further the technology that underpins digital assets, he added.
“Luna raised 30-plus billion [dollars]. No one’s going to use their idea again. [The collapse] educated everybody that this isn’t the way to build a stablecoin. It’s important for the education and the maturation of the market.”
