Investors’ interest in cryptos has been low since last month.
CryptoQuant, a cryptocurrency data analytics platform, has stated that spot and derivative cryptocurrency markets have experienced lower trading volumes since early last month. The cryptocurrency data analytics platform noted that it has been observing the development since last month.
“From about September 9, 2022, it is pretty clear that the volumes in both the spot crypto market and the derivative crypto market are essentially sideways,” CryptoQuant noted in a recent report.
CryptoQuant asserted that interests in cryptocurrencies have been on the decline, as there have not been “pronounced peaks and throughs […] which indicates that interest [in Bitcoin] from both bulls and bears is low.”
There have been reports of market capitulation, as stablecoin is considered a safe haven for many investors. Stablecoin adoption soared earlier this year as the asset class was used as a shield from massive price fluctuations.
Crypto Prices Dip Spread Panic
Investors’ interest in cryptocurrencies plunged tremendously, which was caused by several unfortunate events that rocked the year. Many crypto traders stepped into 2022 with the expectation that the November 2021 rally would continue this year.
However, political and economic events cut short their expectations, plunging the value of the total crypto market valuation. To make matters worse, the collapse of the Terra ecosystem also succeeded in wiping away a huge amount of value from the crypto market, and further causing panic among many investors.
Furthermore, the United States Federal Reserve has continued to hike interest rates to curb inflation. On Year-to-Date (YTD), Bitcoin (BTC) is down 58.9%, Ethereum has plunged 64.5%, while Binance Coin (BNB), Ripple (XRP), and Cardano (ADA) are down 47%, 44%, and 73%, respectively.
CryptoQuant’s analysis is backed by Ali Martinez, a cryptocurrency analyst. Martinez stated that there is a declining interest in Bitcoin among institutional investors. According to Martinez, the number of daily Bitcoin transactions worth $100,000 has reduced.
“The daily number of #Bitcoin transactions with a value greater than $100,000 continues to trend lower, showing a lack of institutional $BTC players’ and #BTC whales’ activity,” Martinez said.
The daily number of #Bitcoin transactions with a value greater than $100,000 continues to trend lower, showing a lack of institutional $BTC players' and #BTC whales' activity. pic.twitter.com/GSRST2rO4Y
— Ali (@ali_charts) October 17, 2022
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
-Advertisement-
