Plunging Crypto Communities Hint on the True State of the Market

Regardless of its great influence and benefits, the crypto market remains largely unstable. Bitcoin, once again, is a good example of how the entire industry follows the pattern of market capitulation resulting in industry bottoms each year as different circumstances create the weather for still a comparably smaller currency market. This is natural as, despite Bitcoin’s or altcoins’ massive market cap, they are still far behind sovereign currencies that are widely used across the globe.

As mentioned earlier, Bitcoin does not hold the title of the most reliable asset on Earth. It has many benefits for businesses and individuals, yet its market price remains a topic of debate among experts and enthusiasts alike. Every last Bitcoin bottom was marked by capitulation in the crypto industry. Such has occurred in 2018 when at the end of the year, Bitcoin fell from over $6,200 to merely $3,500 in a short time span of roughly 2 weeks.

Price is not the only issue: crypto communities are draining

Observing the price change is naturally a good indicator of how capitulation is occurring or if it is at all. However, the problem could be buried deeper in the global crypto community. One of the main issues and concerns that are often raised by observers of the industry is its isolation from the rest of the world. Not may average Joes understand the terms and rules of the sector as it remains largely complicated. Crypto community is what actually drives the industry as these people keep it on the front pages.

However, the latest data published by Aztek, a major crypto trader, suggests that there has been a major drop in the number of crypto-related groups and their members of Telegram.

Community Capitulation

(Whaleclub went private so it's the most accurate number for existing members after 2017 bull run)

Member loss is from June 2018 till April 2020 pic.twitter.com/Cy19Nz0PoS

— Aztek_Ƀtc (@Aztek_btc) April 15, 2020

According to the analysis, there has been a notable decrease in numbers on average of 25% to 75%, depending on groups. The big portion of this plunge has occurred in the past 6 months. This suggests that many members of the community, along with big investors are leaving the industry amid the Bitcoin’s price struggles over the past year.

Twitter users show concern that these communities were not real in the first place — the crypto world is full of bots and fake accounts. Others mention the poor attitude and support could be the reasons why people leave the communities — and that is one bad signal for the market.

But Telegram is not the only indicator of the decline of general interest in cryptos. One of the most popular cryptocurrency websites, Bitcointalk is experiencing a great downshift in users’ interest. There are even new topics started, named “Is Bitcointalk dying?”.

Also, the plunge of interest in cryptocurrencies is clearly depicted by search platforms. In December 2019 finance columnist for Yahoo, Edmund Heaphy, explained that “cryptocurrency searches crash 84% on Yahoo Search in 2019.” He disclosed that there were 65% less queries for the term “bitcoin” than in 2018. The same trend was confirmed by Google. The funny thing is that interest in Bitcoin halving is even more than the Bitcoin itself.

However, there is no precise Telegram or other platform’s data from previous bear markets. Yet, past Bitcoin bottoms were as well accompanied by massive capitulations. Thus, the shrinking community suggests that Bitcoin nears its bottom if it has not hit it already. Let’s still hope for the better.

Image courtesy of Breitbart