🚨Glassnode compares the current market with May 2022: what happened then?

Current situation:

• Unrealized losses on Bitcoin account for about 16% of the market capitalization (at a price of ~$70k)

• The graph shows: a similar level of losses was in May 2022

What happened in May 2022:

• The collapse of the Terra/Luna ecosystem in a week. Algorithmic stablecoin UST lost its dollar peg, the LUNA token collapsed from $116 to zero

• Losses: $40+ billion of Terra capitalization destroyed. The collapse triggered a chain reaction of bankruptcies (Celsius, Three Arrows Capital). After that, Bitcoin dropped from $40k (May) to $17.5k (November)

An important difference is that there is no systemic risk like Terra right now. The pressure comes from macroeconomics, not from within the crypto market.

#bitcoin #btc #CryptoMarketAlert #Glassnode. #bearishmomentum

$ETH

ETH

1,911.28

-1.28%

$BTC

BTC

65,336.01

-2.35%

$SOL

SOL

77.5

-2.46%