Current Bear Market is Worst Ever Recorded, Report Shows

Key Insights:

• The first sign of a bear market is the decline in Bitcoin price below its 200-day moving average.

• Bitcoin is trading at less than half of the 200-day moving average level.

• Only 13.9% of all Bitcoin trading days have seen spot prices below unrealized prices.

In case youve been living under a rock, the crypto market collapsed in May, erasing more than $2 trillion in value. In a week, Terra went from being valued at more than $50 billion to collapsing into a state of disrepair.

As Terra collapsed, wiping out nearly $40 billion in investors capital, so too did other cryptocurrencies. When the algorithmic stablecoin UST lost its peg to the U.S. dollar and the price of LUNA dropped 98%, it fuelled a slump across cryptocurrencies. The result was a market capitalization that fell below $1 trillion for the first time since January 2021.

While cryptocurrencies have a track record of boom and bust cycles, owing to their volatility, a new report by blockchain analysis firm Glassnode shows that the current crypto bear market is the worst ever recorded.

More specifically, on-chain analysis highlights how Bitcoin‘s (BTC) combined current dip below the 200-day moving average (MA), negative deviation from realized price and net realized losses makes 2022, unequivocally, the worst in BTC’s history.