According to Nomic, Bitcoin is currently selling for roughly $32,000, down 9.4% in the last 24 hours and 20% in the last week. It’s down 2% since the start of the year. Ethereum, the second-largest cryptocurrency by market capitalization, has dropped 12.5% in the last day and roughly 24% in the last week. Even popular joke currencies are losing ground, with Dogecoin losing 33% of its value in just 24 hours.
Are we about to enter another crypto winter as a result of these drops? The experts’ response has been a resounding “maybe.”
The Bitcoin bear market was “confirmed” today, according to Ki Young Ju, CEO of CryptoQuant, a data provider for investors, who tweeted that huge investors were sending their capital to exchanges.
On the other hand, Pedro Febrero, head of the blockchain at crypto fantasy marketplace RealFevr and analyst at Quantum Economics, says it’s too early to call a bear market.
Since last month, when it experienced its greatest drop in history, the crypto market has taken a beating: $500 billion was wiped out in an instant. Bitcoin and other cryptocurrencies have plummeted since then.
Despite this, a significant amount of money is still being invested in this sector. According to Matt Aaron, co-founder of UniWhales, an app that records large DeFi transactions, the crypto sector resembles the internet in its early phases, and it’s too difficult to predict which way the market will go.
He explained, “We’re used to it [the market] going up and down violently—extreme volatility.” “However, if you look at the internet’s rise after 2001, with real-world adoption, which we are closer to than ever before, maybe it will be more like that, with a year-on-year increase.”