Are we entering a crypto bear market?
Here are 6 charts you need to know:
Crypto Fear and Greed Index shows people’s confidence in the market.
With a score of 10, people are in “extreme fear” now.
As prices of crypto fall, many investors get scared and pull their money out.
$UST was one of the biggest stablecoins in crypto.
It should be pegged to USD at $1, but it depegged. It’s currently sitting at $0.06.
This caused Terra’s secondary token, $LUNA, to fall from nearly $100 to $0.00018 USD.
NFT sales have been decreasing lately.6 $11 million.
The average daily trading volume in the month of April was $116 million.
In the past week, the average daily trading volume fell to $34.8 million!
（Wendy will update the numbers after Mariel finishes visualizing the article)
According to punk9059, the fall in the top 6 NFT projects was the most dramatic.
That said, no one could be spared: not a single NFT set in any of these indexes was up during this time.
In the latest earnings report, they mentioned that in the event of a bankruptcy, customers would be treated as general unsecured creditors.
This means that customers wouldn’t get their money back!
Maybe the best solution is a self-custodial wallet solution (ie. coinbase wallet, metamask, gnosis-safe) 🤔
It’s not just crypto...
The overall macroeconomy is looming: slow economies, the Russia-Ukraine war, and supply issues.
Even tech stocks plummeted on Wall Street. The S&P 500 saw a 9.19% decrease compared to last month.
So are we entering a bear market?
It’s tough to say.
The crypto market has a long history of extreme volatility.
Make sure your heart can weather the storms and that you are investing money you can afford to lose.
But it is worthwhile to end with Warren Buffet’s quote: “Be fearful when others are greedy, and greedy when others are fearful.”