Crypto Market Downturn: Resembling 2020 or 2021 Bear Market?
CryptoNewsTerminal Staff06 Aug, 2024
Crypto Market Downturn: Resembling 2020 or 2021 Bear Market?
CryptoQuant CEO Ki Young Ju provides insights into the recent market downturn and its potential resemblance to previous market cycles. According to Ju, this recent market plunge is primarily driven by forced selling amidst macro uncertainty rather than fundamental factors. He suggests that the current situation is more akin to the start of the 2020 bear market, characterized by a sell-off due to external factors, rather than the end of 2021, which was marked by a retail-driven FOMO (fear of missing out) sell-off. Ju emphasizes the role of institutional and old whale distribution to new whales in the current market, indicating a lack of retail involvement. However, he cautions that a significant sell-off triggered by macroeconomic factors could present an opportunity to acquire digital assets at attractive prices, particularly if the $45,000 level holds. Ju's analysis highlights the need to consider both on-chain data and macroeconomic factors when evaluating market trends and making investment decisions. It remains to be seen whether the current downturn will follow a 2020 or 2021-style trajectory, but market participants should remain vigilant and adapt their strategies accordingly.
