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Grayscale: Next Bear Market Cycle Could Last Up To 250 Days

Based on previous market cycles, Grayscale wrote in a report that the current crypto winter could extend for another 250 days.

As reported by Grayscale, a cryptocurrency market cycle has an average lifespan of 4 years (1275 days) and a bear market begins when the realized price moves below the market price (the current trading price of the asset).

Grayscale’s actual price calculation is the sum of all assets at their purchase price divided by the asset’s market capitalization, allowing it to measure the number of profit or loss positions.

Accordingly, the investment firm said that the actual price of Bitcoin (BTC) was below the market price on June 13, which signals the beginning of a bear market.

Source: Grayscale

The value of Bitcoin may have been volatile in the current market situation, but the network continues to function as expected.

Grayscale says the network is on track to process $18 trillion in transactions this year, up from $13 trillion recorded in 2021.

Source: Grayscale

The use of this asset, along with other crypto assets for remittances, has continued to grow despite poor market conditions.

According to Grayscale, Mexico-based crypto exchange Bitso saw a quadruple in cross-border remittances between Q1 2021 and Q1 2022.

The firm says the decentralized finance (DeFi) space has had an interesting year seeing lenders forced to repay their loans before equity holders or centralized lenders to avoid a liquidity crisis.

“Despite capital outflows due to users deleveraging their positions, the total borrows on lending platforms, like Aave and MakerDAO, remain higher than at the start of 2022.”

In addition, the liquidity of stablecoins paid on decentralized exchanges like Uniswap (UNI) is 5 times higher than that of the largest centralized cryptocurrency exchange by trading volume, Binance.

Source: Grayscale

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.