Just how bad is the bear market right currently?
Historically low expenses have survived for a longer period in the present bear market cycle than in any other.
The leading cryptocurrency, Bitcoin, has been in a freefall since January 2021, when it hit a high of $69,000. A maximum unrealized failure of 75% from the all-time high was sustained by long-term investors as BTC fell to $17,000 midway through the year. An important indicator of the true worth of one's Bitcoin assets is the net unrealized profit or loss (NUPL).
You must be living in alretnate reality. The 69 thousand was in November 2021, not January.
I'd also like to address the fact that long term investors did not lose 75%. Long term hodlers are people who bought in the bear market of 2018 - 2020 or before that, not people who bought in 2021 and decided to hold on to their coins no matter what.
Those who bought in 2020 or before did not lose anything. Their coins are worth more and in the worst moments at 15 thousand some of them were maybe at a 10% loss. if they were holding coins from that small bull run in 2019.
It's the same for people who bought in 2020. Most of them were in the green in this bear market.
Bitcoin has been on a downward trend recently. The cryptocurrency market hit a three-month low of $18,432 earlier this week. CoinGabbar reports that the current price of Bitcoin (BTC) is $18,930, down 3.21% in the previous 24 hours. Since its price dropped recently, Bitcoin's share of the cryptocurrency market has shrunk. This means that Bitcoin now accounts for 41.02% of the total market cap of all cryptocurrencies.
You've just said that we've been in a bear market since 2021, now it's recently? Bear market means we're constantly in a downtrend and all run ups end with lower highs.
Institutional Investors Have Little Faith
Grayscale, a company that manages bitcoin assets, has noticed a decrease in its Bitcoin volumes. What this says is that institutional investors are not optimistic. The largest institutional investor in Bitcoin, Microstrategy, has increased its holdings.
Do they? If the largest institutional investor is buying it doesn't look like they're not optimistic. Institutions were mostly investing through proxies and these proxies were getting insolvent one by one last year because they were lending money. It's not a lack of trust in bitcoin but in centralized entities that custody bitcoin. I'm fine with that, maybe they'll finally learn to custody themselves.