The ninth week of the year is approaching and it can't shake the chills.
Market indicators are red or amber for the biggest criptocurrency, which has lost a third of its value in just two months.
We define prolonged bearishness for a month or more because of the limited history of the digital currency.
There have been five since 2017 and three since 2021. Last year, the two crashes lasted 14 and 10 weeks and caused bitcoin to lose 45% to 47%. If they were typical, the latest drop -- 36% shed in eight weeks -- has a road left to run.
Joseph Edwards, head of financial strategy at Solrise Finance, said that nobody really sees the potential for bitcoins to give 10 times return.
The macro background isn't supportive for an asset class that is now seen as volatile, risky and vulnerable in the face of inflation. As worries over rising global rates and geopolitics bring the U.S. stock price close to confirming a bear market, cryptocurrencies aren't on anyone's shopping list.
There are some signs that the king is planning to come back, even in the icy wilderness.
After the collapse of TerraUSD in early May, the rest of the market is benefited by its relative strength, as well as its relative strength, which provides some comfort for investors fleeing altcoins such as stablecoins that are considered ultra-risky.
Even though its price has decreased, it has jumped to a seven month high of 44%, a measure of its market cap to the rest of the criptocurrency markets.
Marcus Sotiriou, analyst at UK-based asset broker GlobalBlock said institutional investors are fleeing to safety because of the fact thatbitcoin has the most institutional adoption.
The CFTC data shows that traders are positioning for a rise in the price of the digital currency, as they saw their largest net long position last week.
Since the November 10 peak of $69,000, the value of the digital currency has lost half of its value. It is flirting with $30,000 this week after touching a 17 month low of $25,401 on May 12. It remains the largest digital asset by market cap, but the market value of all cryptocurrencies is $1.3 trillion, less than half of the $3 trillion peak in November.
Coinglass's Fear Greed Index of Market Sentiment - where 0 indicates extreme fear and 100 extreme greed - is hovering at 13.
The 2 token by market value has hovered near the $2,000 mark, and is down about 60% from a peak of $4,868 on November 10.
Bilal Hafeez, CEO at research firm Macro Hive, pointed to $2,300 and $2,500 as key levels and warned that failure to hold above either of those marks in the near term would be a bearish signal.
As of Monday, total spot market volume for all cryptocurrencies at major exchanges had fallen to $18.4 billion, less than half of the $48.2 billion seen on May 14, which was the highest volume for 2022, according to news and research site The Block.
Glassnode said on May 9 that 40% of investors are underwater on their holdings because of the fact that the price of the virtual currency is $33,600.
Many people are left wondering what they should do if their coins keep holding on for dear life or book losses? Lindsey Bell, chief markets and money strategist at Ally Invest, said it was the brainchild of Lindsey Bell.
It's a good reminder that it shouldn't be more than 1 - 2% of your portfolio.