Tron, Dogecoin, ADA See Buying From Whales; Why 2022 Is the Most Significant Bear Market So Far for Bitcoin and Ethereum

According to Whalestats data, Tron (TRX) and Dogecoin (DOGE) are now among the top 10 most purchased tokens among the 500 biggest BSC whales in the last 24 hours.

Dogecoin and Cardano (ADA) also rank among the top 10 purchased tokens among the 100 biggest BSC whales in the last 24 hours. DOGE also ranks one of the most used smart contracts among the top 4000 BSC whales in the previous 24 hours.

The year 2022 has been difficult for Bitcoin and Ethereum, with valuations taking a swift and severe blow. It is reasonable to argue that 2022 is the most significant bear market in the history of digital assets due to the broad duration and scope of capital destruction of the current.

This is the first time in recorded history that both Bitcoin and Ethereum have traded below their previous cycle ATHs. As a result, a sizable chunk of the market experienced unrealized losses, leaving all 2021–2022 investors underwater.

Indications for Bitcoin

According to Glassnode, bear market lows have historically been reached with BTC drawdowns of between -75 and -84 percent from the ATH, lasting between 260 and 410 days in 2019–20 and 2015, respectively.

This bear market is now well within historical norms and severity, with the current fall hitting -73.3 percent below the Nov-2021 ATH and lasting between 227 days and 435 days.

The current market is only the third instance in the past six years where spot prices have traded below the realized price. The capitulation occurrences in November 2018 and March 2020, respectively, marked the end of that bear market cycle. The average market participant is currently negative on their position as spot prices are trading at an 11.3 percent discount to the realized price.

The greatest daily realized loss in history in US dollars was experienced during the most recent price crash through the $20k zone. In one day, investors as a group locked in a loss of -$4.234 billion, a 22.5 percent increase from the previous record of $3.457 billion recorded in mid-2021.

Bitcoin is currently undergoing the most significant capital outflow event in history, larger than that at the end of the 2018 Bear Market, and again in the March 2020 sell-off.

Ethereum

With a max drop from its ATH of -79.5 percent, Ethereum has sold off within the upper bound of prior bear market floors.

The gravity of capital flows is being dictated by BTC dominance, which historically has predicted greater ETH underperformance in the months that follow.

If the $0.15/byte levels are revisited, the Ethereum Value captured per Byte indicates declining capital efficiency and points to a probable further 50 percent decrease. An earlier recovery would suggest enhanced value capture capabilities on the part of the Ethereum network.

The two largest statistical capital destruction events in Ethereum history occurred during the past six months, totaling $27.6 billion in net withdrawals from the Realized Cap.

The MVRV is significantly declining for both ETH and ETH 2.0, indicating that the majority of ETH holders are holding sizable unrealized losses. With investors realizing an average loss of -16 percent per transaction, Ethereum transaction profitability is still stuck at levels last seen in January 2019.

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