{"id":525907,"date":"2022-12-13T00:55:15","date_gmt":"2022-12-12T21:55:15","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoins-bear-market-is-far-from-over-but-data-points-to-improving-investor-sentiment\/"},"modified":"2022-12-13T00:55:15","modified_gmt":"2022-12-12T21:55:15","slug":"bitcoins-bear-market-is-far-from-over-but-data-points-to-improving-investor-sentiment","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoins-bear-market-is-far-from-over-but-data-points-to-improving-investor-sentiment\/","title":{"rendered":"# Bitcoin\u2019s bear market is far from over, but data points to improving investor sentiment"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a40a8a6f3a20\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a40a8a6f3a20\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoins-bear-market-is-far-from-over-but-data-points-to-improving-investor-sentiment\/#%E2%80%9D_Bitcoins_bear_market_is_far_from_over_but_data_points_to_improving_investor_sentiment_%E2%80%9C\" >&#8221; Bitcoin\u2019s bear market is far from over, but data points to improving investor sentiment  &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoins-bear-market-is-far-from-over-but-data-points-to-improving-investor-sentiment\/#Low_liquidity_and_losses_abound\" >Low liquidity and losses abound<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoins-bear-market-is-far-from-over-but-data-points-to-improving-investor-sentiment\/#Minimal_improvements_in_investor_sentiment_appears\" >Minimal improvements in investor sentiment appears<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Bitcoins_bear_market_is_far_from_over_but_data_points_to_improving_investor_sentiment_%E2%80%9C\"><\/span>&#8221; Bitcoin\u2019s bear market is far from over, but data points to improving investor sentiment  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-30a6cf80>It&#8217;s been a near-unprecedented year of extremes and black swan events for the crypto market, and now that 2022 is about to wrap up, analysts are reflecting on the lessons learned and attempting to identify the trends which may point to bullish price action in 2023.\u00a0<\/p>\n<p>The collapse of Terra Luna, Three Arrows Capital and FTX created a credit crunch, a severe reduction in capital inflows and an increased threat that additional major centralized exchanges could collapse. <\/p>\n<p>Despite the severity of the market downturn, a few positives have emerged. Data shows long-term hodlers and smaller-sized wallets are actively accumulating during this period of low volatility.<\/p>\n<p>Let\u2019s dive in on the positive and negative data points. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Low_liquidity_and_losses_abound\"><\/span>Low liquidity and losses abound<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When liquidity was flooding into the market in November 2021, Bitcoin (BTC) price hit an all-time high and investors realized $455 billion in profits. Conversely, as liquidity tightened in what many investors hoped were the darkest days of the bear market, $213 billion in realized losses led to investors giving back 46.8% of the peak bull market profits. The magnitude of the profits versus realized losses is similar to the 2018 bear market, when the ratio retraction from gains hit 47.9%. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/5f1ad4d6-134d-4aad-b952-60071a27f7da.png\"><figcaption style=\"text-align: center;\"><em>Yearly sum of realized Bitcoin profits and losses. Source: glassnode<\/em><\/figcaption><\/figure>\n<p>In the thread below, Cumberland, a major liquidity provider within the crypto sector, highlighted the liquidity challenges facing the market:<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">There are plenty of sources of concern for market participants \u2013 volumes and liquidity have dried up and are, by various metrics, on the lows of the year. While this could be a holiday phenomenon, sentiment is dark \u2013<\/p>\n<p>\u2014 Cumberland (@CumberlandSays) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CumberlandSays\/status\/1602317882733502464?ref_src=twsrc%5Etfw\">December 12, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to Cumberland, the limited liquidity is a result of large-scale capitulations, leaving bankrupt firms with no remaining coins to sell. <\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CoinSharesCo\/status\/1602272453417394183?s=20&amp;t=msnwNARHai7qmN3mioLfVA\">CoinShares<\/a>&#8216; analysis of weekly fund flows also showed trading volumes reaching a new two-year low of $677 million for the week. The low trading volumes are coupled with crypto funds flowing out of digital assets, further hampering potential upside.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/ce34edb7-576c-4f7b-89e1-0f386fbc4659.png\"><figcaption style=\"text-align: center;\"><em>Crypto fund flows as a percentage of fund AuM. Source: CoinShares<\/em><\/figcaption><\/figure>\n<p>Historically, centralized exchanges (CEX) have been a source for fiat onboarding which helps bring more capital into the crypto asset space. Due to regulatory concerns and CEX fears, bringing in new funds has become challenging. <\/p>\n<p>While the above data is very bearish, the market also has some data points that may point to a reversal. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Minimal_improvements_in_investor_sentiment_appears\"><\/span>Minimal improvements in investor sentiment appears<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While traders are hoping for a positive Federal Reserve meeting that will reverse the short-term bearish trend, there are on-chain data points showing sentiment making some marginal improvements. <\/p>\n<p>CoinShares states that even with CEX fears and smaller volumes, inflows are improving: <\/p>\n<blockquote><p>&#8220;Bitcoin saw inflows totalling $17 million, sentiment has been steadily improving since mid- November with inflows since then now totalling $108 million.&#8221;<\/p><\/blockquote>\n<p>While these numbers are not groundbreaking, Bitcoin\u2019s low volatility offers investors an opportunity to dollar-cost average and await a potential trend reversal. Current volatility is at multi-year lows for Bitcoin, reaching figures last witnessed in October 2020. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/55fe1528-2a5f-4647-83f6-ecc542a4d079.jpg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Realized Bitcoin volatility. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>Record lows in volatility is coupled with a new all-time high in long-term Bitcoin hodlers cohort. Even as the price of BTC remains in a downtrend, 72.3% of all circulating Bitcoin supply is now in the hands of long-term hodlers. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/85fb0aad-a3b4-4d5f-a46d-400e03ecdbbd.jpg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Total Bitcoin supply held by long-term hodlers. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>Glassnode notes that data shows:<\/p>\n<blockquote><p>\u201cThe near linear uptrend in this metric is a reflection of the heavy coin accumulation that occurred in June and July 2022, im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely after the deleveraging event inspired by 3AC and failing lenders in the space.\u201d<\/p><\/blockquote>\n<p>Adding to this perspective, former BitMEX CEO Arthur Hayes believes Bitcoin has bottomed after a handful of bankruptcies flushed irresponsible entities from the space. <\/p>\n<p>While the uptick in sentiment and institutional investor inflows is not substantial enough to trigger a trend reversal, the positive data points show some signs of recovery. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<p class=\"post-content__disclaimer\">The views, thoughts and opinions expressed here are the authors\u2019 alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.\n<\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-s-bear-market-is-far-from-over-but-data-points-to-improving-investor-sentiment\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Bitcoin\u2019s bear market is far from over, but data points to improving investor sentiment &#8220; It&#8217;s been a near-unprecedented year of extremes and black swan events for the crypto market, and now that 2022 is about to wrap up, analysts are reflecting on the lessons learned and attempting to identify the trends which may&#8230;<\/p>\n","protected":false},"author":1,"featured_media":525908,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/fa37f307-a96e-4782-841a-a35c940040d9.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[82304,74862,74937,74863,74860,135234,107545,74939,122378,75541,73785,71407],"class_list":["post-525907","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-arthur-hayes","tag-bitcoin","tag-bitcoin-price","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-ftx","tag-liquidity","tag-market-analysis","tag-terra","tag-volatility","tag-markets","tag-trading"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/525907","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=525907"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/525907\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/525908"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=525907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=525907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=525907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}