Cryptocurrencies were not exempt from this situation, with the passage of time we noticed that the industry is affected to a similar extent with traditional risk assets. This is because the number of users who consume cryptocurrencies, both for having heard of them, for having included one or another in their portfolios or simply through studying them, has grown strongly.
The market capitalization of Bitcoin is ~70% below its historical maximum, this data could become a precedent for a large number of users to stop investing in this type of asset, since it did not generate a return in this period positive.
However, within all the negative signs that arise in a bear market. We can highlight that only one above the rest that does not have this connotation. Which is that a few users have completely withdrawn their funds from the cryptocurrency industry.
But how do we arrive at this statement? When analyzing the market capitalization of stablecoins or stablecoins (which have as main axiom that they maintain a nominal parity with the dollar of 1:1), we note that while the market capitalization of Bitcoin was reduced by 70%, within the stable coins said value was only reduced by 11 %.
This data is encouraging, since it indicates that, although users at times of a bear market want to hedge by leaving riskier assets, they remain within the industry, keeping their portfolios liquid in order to take advantage of new investment opportunities. purchase in the future.
Crypto & Financial Analyst at N&W Professional Traders.
Source: Ambito
