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Cardano (ADA) was up 29.89% in the past seven days compared to Bitcoin and Ethereum 0.28% and 2.04% up respectively.
Bitcoin and Ethereum prices continued to shed further today leading to the total crypto market cap below $2 trillion this year. While some analysts are optimistic the market could turn around in the near future, some are warning of possible free fall to new lows.
According to metrics provided by Binance-backed Coinmarketcap, Bitcoin traded around $41,908.24, down approximately 2.07% in the past 24 hours. Ethereum on the other hand exchanged hands at around $3,171.25, after shedding approximately 3% in the past 24hrs.
The global crypto market cap stood around $1.99 trillion after a decline of approximately 2.85% over the last day. The altcoin market was in the red for the past 24 hours. Moreover, most of the altcoins are heavily dependent on the top two digital assets, Bitcoin and Ethereum.
Historically since the inception of digital assets, a multi-week bear market that lasts for at least two years sustains uninterrupted until the next Bitcoin’s halving. Should the case materialize, then the crypto market could be trapped in a bear market until 2024, when the next halving is expected.
Meanwhile, it is expected that institutional investors will have minimal interest in the crypto market. According to Laurent Kssis, a crypto exchange-traded fund (ETF) expert and director of CEC Capital, crypto price recovery is less likely from now due to low interest from institutional investors.
“A good barometer is always the asset under management and inflows into crypto exchange-traded products and ETFs. So far we have recovered only $1 billion of inflows versus $4 billion that has left these products alone in January,” Kssis told CoinDesk
What Will Come Next for Bitcoin, Ethereum, and Wider Crypto Market
Binance CEO CZ once said, whenever one sells their crypto holding, there is a ready buyer for a healthy market. Hereby, as the crypto industry possibly enters a bear market, the smart money is expected to enter before the next Bitcoin halving. Furthermore, adoption has scaled to the country level and big corporations are preparing to enter the crypto and blockchain ecosystem.
It is worth noting, the traditional market has seen a notable drop in the past few days. A post by WSJ indicates that more than 220 US-listed companies with market capitalizations above $10 billion are down at least 20% from their highs.
Geopolitical tensions around the world especially between superpower countries have also contributed to the market uncertainty. Additionally, the Omicron Covid crisis has also proved a menace to the entire global economy. Furthermore, the global supply chain remains hampered by the increased infections.
Nevertheless, some top altcoins investors are counting profits in the past seven days. According to data provided by Coinmarketcap, Cardano (ADA) was up 29.89% in the past seven days compared to Bitcoin and Ethereum 0.28% and 2.04% up respectively.