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Only 11% of Investors Left Crypto Market Instead of Expected 70%

Thu, 06/30/2022 - 08:05
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Arman Shirinyan
Crypto market is not wasteland as some economists and analysts portray it
Only 11% of Investors Left Crypto Market Instead of Expected 70%
Cover image via www.freepik.com

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

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Determining the number of investors who left the market can give us insight into the overall sentiment in the industry and help us to determine if the market is set for recovery or will keep reaching new lows. According to CryptoQuant data, it is not as bad as one might expect.

To determine the rough percentage of investors who left the market, we can take a look at such data as capitalization of the biggest assets on the market. At first, it may seem that a larger portion of the industry has left it for better times, especially after we see a 70% capitalization plunge on Bitcoin and Ethereum.

But calculating the number of investors who left the space by comparing capitalization of volatile assets like Bitcoin over different periods would be inaccurate. Instead, the analyst suggested looking at the capitalization of stablecoins.

In the case of stables, we see "only" an 11% dive in capitalization, which shows that the cryptocurrency took less damage than anticipated by the majority of bearish analysts and economists.

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Such a strong drop in the value of various cryptocurrencies is most likely the result of lacking liquidity. With the plunging price of assets like Bitcoin and Ethereum, users "Tether out" but do not move their funds out of the digital space, meaning they would most likely put them back after market sentiment normalizes.

Unfortunately, it is not the case for now as Bitcoin failed to hold above $20,000 and break local resistance levels due to lack of buying power on the market and fading volume between June 18 and June 26. At press time, BTC trades at $19,380.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.

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