Bitcoin has for the first time since December 2020 fallen below $20K.
The leading cryptocurrency at the time of publication is trading at $19,095 with a recorded loss of 9.38%. Over the last 7 days, it has fallen by 34%. Bitcoin dominance is currently 43.39% representing a 1% decrease in 24hrs.
For weeks the market has been on a downward path, total market capitalization is down by 7.78% in the last day and currently stands at $835.6 billion.
Across the board, the market has been bleeding with Ethereum losing 9.53% (24hrs) and 37% over the last 7 days.
Tether and USDC are the 3rd and 4th highest crypto assets by market capitalization. BNB is trading at $200 after losing 8.29% (24hr) and 29.5% (7days).
Stages of the bear market?
The market bearish sentiments have been heightened by three significant incidents in the past weeks. One was the collapse of the Luna ecosystem, resulting in huge losses for investors, which was followed by the Celsius saga. Next was the reported liquidation of the hedge fund, Three Arrow Capital by BlockFi.
Blockwork co-founder Jason Yanowitz, described the stages of a bear market in a Twitter thread, mentioning three stages, he said we are in stage two. The first stage he called “The Unwind”, and it is the greed and excitement of the bull market still exist. Where investors believe the pullbacks are normal market corrections.
The second stage he called Forced Capitulation, “this is where it gets ugly”, he said. Price fall 90%, companies layoff. There have been mentions of companies laying off workers.
According to Jason, Luna was the catalyst of stage 2. Diamond hands are forced to sell because they have to.
The third stage is where companies will shut down, regulators will come knocking, and prices will move slowly up and down. He called this stage “Bottomles Exhaustion”. The Blockwork co-founder also did share a piece of advice “Don’t lose sight of the big picture”.
What do you think of the crypto market? Will bitcoin rise above 20K soon? Whatever it ish, share your comments with us below.
