“Risk off” sentiment in the crypto market according to CoinMarketCap and Glassnode market report

This marks the first collaboration in a series of market insights released by both firms

Image source: AliceLiu/CoinMarketCap/RafaelSAchultzeKraft/Glassnode.

Price tracker CoinMarketCap (CMC) and on-chain data company Glassnode have teamed up to publish an H2 crypto market report.

On Friday, the On-chain Analytics report was published, starting the first in a series of monthly market insights to be released between the two companies. According to the report, the crypto market is in the midst of a “risk off” sentiment, as the current bear market reflects the drought of 2018.

Founded in 2013, CMC is considered the best crypto asset price gauge in the area, attracting over 340 million viewers to its site.

In April 2020, CMC was acquired by crypto exchange Binance for £328 million.

Based in Switzerland, Glassnode has been operating since 2017. In the five years since coming onto the scene, the company has established itself as one of the leading on-chain data solutions in crypto.

“With all the noise in the market, we think it’s time to take an analytical approach and look at the underlying health of the market,” Alice Liu, head of research at CMC told AltFi.

Central to the On-chain Analytics report is the analysis of bitcoin’s bear market. As of June, bitcoin has fallen 74 percent since hitting an all-time high in November 2021.

However, as the bitcoin market has matured and grown in liquidity, the bottom of the bear market has sunk in their withdrawals from all-time highs.

In 2011, bitcoin was down 93 percent, in 2015 and 2018 the flagship crypto fell 84 percent and in March 2020 the drawdown was 75 percent.

Ethereum, the second-largest coin by market capitalization, hasn’t fared much better, down 45.4 percent in June.

The report concludes that digital assets have experienced a shift towards “risk-on sentiment” during 2022.

Despite the report’s bearish undertones, Liu said: “We have already started to see an uptick this week in the crypto market again”.

Following the Federal Reserve’s decision to increase the funding rate by 0.75 bps, the crypto market has risen 0.77 percent.

“With Glassnode offering such a comprehensive library of on-chain and crypto-financial metrics, they will help provide a holistic view of the industry,” Liu explained.

Outside of On-Chain Analytics, CMC Research will also look to bring in leading voices from the industry for thematic research efforts.

Glassnode has not responded to AltFi’s request for comment.