Does the current market condition reflect 2019? IntoTheBlock provides statistics

The current market situation has raised speculation among market participants about the short-term price trajectory of the asset class. The slowdown in crypto adoption and a difficult macro environment have traders wondering if this is the start of a bear market or just a quiet phase in this bull cycle.

IntoTheBlock said analysts noted that the current phase reflects a trend seen in 2019, where the market cooled and experienced a prolonged consolidation after a local high before turning bullish again. While the market could be on the same path from 2019, IntoTheBlock believes that current data tells a different story.

The state of the macroenvironment

The crypto market began 2024 with great optimism, with expectations of a BTC all-time high due to the approval of US spot Bitcoin exchange-traded funds (ETFs) and a bull run following the fourth half While BTC hit a new high in March and continued to trend upward into early June, the narrative has changed.

Investors are worried that the broader financial market is on the brink of a recession and risk is weighing on assets, including crypto. The Federal Reserve is expected to cut rates soon, but IntoTheBlock said the positive effect of the move may take some time. Meanwhile, the macro picture will continue to drive negative sentiment.

Bitcoin price is currently under pressure and has no significant upward momentum. The market faces growing uncertainty and increased volatility as retail and institutional interest appears to be fading. This waning interest is evident in the outflows that Bitcoin ETFs witnessed over the past week. The products just snapped their longest outflow streak that saw investors withdraw nearly $1 billion in eight days.

Stay open to possibilities

Declining interest in retail cryptocurrencies can be seen in the slow influx of new users. Google search trends for “cryptocurrency” are at multi-year lows, with broader search topics indicating a trend away from the excitement of a bull market.

Rankings of crypto apps like Coinbase on mobile devices suggest that fewer people are engaging with the asset class.

On-chain metrics tell a similar story: there are fewer new Bitcoin addresses, reflecting waning enthusiasm, and long-term holders are seeing their BTC balances hit new lows, a sign that historically imply an extended reuse period.

While pre-halving data suggests this market move could be a post-halving drop, IntoTheBlock stated that there are no “clear answers” and traders can only remain open to the possibilities.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!