Crypto Winter called historically by experts

Current bear market called “historic” by experts

A report from FX Empire indicated how the downturn in the cryptocurrency assets market, or the cryptocurrency winter as it is best known, is the worst ever. This is according to a note from the blockchain analysis company Glassnode.

“As this financial pain sets in, an increasing proportion of investors liquidate their holdings, locking in record losses,” the full market report indicated.

The bear market crypto is in the moment has highlighted the recent mainstream investors who joined and now see impairment below their expectations. FX Empire indicated one of the takeaways for the entire report:

More specifically, chain analysis highlights how Bitcoins (BTC) combined the current fall below the 200-day moving average (MA), negative deviation from realized price and net realized losses make 2022, unequivocally, the worst in BTC’s history.

Bitcoin ETF is launched with short option

ETF issuer ProShares launched a new fund designed to provide an entry point for those who want to short bitcoin given the current market downturn.

ProShares Short Bitcoin Strategy ETF (ARCA: BITI) was launched at the end of the month.

“BITI gives investors who believe that the price of bitcoin will fall with an opportunity for potential profit or to secure their holdings of cryptocurrency,” said ProShares CEO Michael L. Sapir.

ProShares launched a more traditional bitcoin ETF last year as many other fund providers ran to launch these funds.

This fund gains exposure to the digital asset through bitcoin futures contracts, a tactic previously criticized by fund makers in Canada.

Short selling is an investment strategy where a bet is placed on the decline in the price of an asset. The assets are typically shares, but can also be digital assets or the price of bitcoin and other coins.

The cannabis industry recently faced a strong fight against short selling in the midst of a growing period of stock value and over-expansion from some companies.

From all over the web

• Singapore wants to explore more digital assets and opportunities to embrace decentralized finance (DeFi) along with DBS Bank, JPMorgan Chase (NYSE: JPM) and Marketnode.
• A Bloomberg report indicated that there is potential for financial trading service Robinhood (NASDAQ: HOOD) to become available for purchase, and a deal could be discussed for cryptocurrency exchange FTX to acquire them. That reporting was rejected by comments from the FTX management shortly after.
• A new sports partnership with NFT offers has been announced. The National Hockey League (NHL) has now entered into a partnership with the NFT marketplace Sweet to create new offers based on the players. The launch of these digital assets comes at a time when these products are at a low point for prices and interest in the middle of the crypto winter.

One last thought …

Volatility is a key concept related to the blockchain market and especially to the cryptocurrency market.

In a recent report, Reuters indicated that the decline in cryptocurrencies has forced investors to reconsider what their intentions and strategies are when it comes to this investment field.

Risk tolerance and a solid investment task to deal with are pointed out as important things for investors to set up in themselves.

“Some people have set up their portfolios in the euphoria of recent years, without much thought for a larger plan,” Christine Benz, director of personal finance for investment research firm Morningstar, told Reuters.