Summary:<\/p>\n
The crypto markets have somewhat come to terms with the depegging of UST<\/a>, the downward spiral of LUNA that followed, and both events affecting the price of Bitcoin and the entire digital asset spectrum. According to a recent report<\/a> by the team at Glassnode, the Bitcoin market has continued to trade lower<\/a> for eight consecutive weeks, thus becoming ‘the longest continuous string of red weekly candles in history.’<\/p>\n The report goes on to highlight that the fear currently in the Bitcoin and Ethereum derivative markets, could point towards a scenario where the outlook is further downside at least for the next three to six months. The report explains:<\/p>\n Looking on-chain, we can see that both Ethereum and Bitcoin blockspace demand has fallen to multi-year lows, and the rate of burning of ETH via EIP1559 is now at an all-time-low.<\/p>\n Coupling poor price performance, fearful derivatives pricing, and exceedingly lacklustre demand for block-space on both Bitcoin and Ethereum, we can deduce that the demand side is likely to continue seeing headwinds.<\/p><\/blockquote>\n Furthermore, according to the team at Glassnode, Bitcoin has had an average return of -30% in the last month, implying that BTC lost 1% of its value every day in the last 30 days. In the case of Ethereum<\/a>, the number two digital asset has been hit harder by the ongoing drawdown, experiencing a -34.9% return in the same period.<\/p>\n Consequently, the ‘correlation of performance between these two assets remains strong, despite numerous differences in their fundamental properties.’<\/p>\nFear in the Bitcoin and Ethereum Derivative Markets Hint Suggests More Pain for the Next Three to Six Weeks<\/h2>\n
Bitcoin and Ethereum’s Correlation Remains Strong<\/h2>\n
Bear Markets Have a Way of Ending and Author the Bull that Follows<\/h2>\n