Crypto: An Abandoned Market

The volume in crypto market has been decreasing for a very long time as the influence of central banks' interest rate hikes and decreasing risk appetite of investors affected the crypto ecosystem deeply. As a result, the crypto market cannot find new investors that would bring more volume and liquidity to the blockchains.

Among the top reasons behind the lack of volume, global risks might be one of the most effective factors as inflation and geopolitical conflicts directly affect the risky markets. In addition, the dept of people and rising interest rates may force people to sell their digital assets to cover their payments.

As the news shared, people cannot find even $1000 to pay for their debt or the cost of the services that they got. This is a huge red flag for the markets.

Crypto Market Around $1T

The marketcap of crypto has retraced from the highest point, $3T in November 2021, and it is slightly going up and down in a vertical channel.

Currently, the marketcap of the whole crypto ecosystem is around 1/3 of what we saw in the bull market. As expected, the value of cryptocurrencies dropped when the FED became an active figure on the markets.

When you focus on the volume history, you will recognize that the current marketcap levels are the most frequently touched levels considering the earlier ATH in 2018 and the most recent one. Obviously, as we discuss it on Crypto Twitter, when Bitcoin hits above 33K, the marketcap will go up like a rocket in a launchpad.

Melt down of the Volume

Among crypto communities, the $10T market cap for the next bull market is seen as a possible target that will be around 10x from today's current state.

Focus on the volume tracker and the decreasing volume in crypto market. These days might be the best times to be in crypto as the supply is high whereas there is hardly any demand on strong crypto projects.

The so-called dip in the market might be around this zone. I think the fundamentally strong projects' tokens can be purchased by applying a DCA strategy while the market is almost left out.

Also notice that while NASDAQ has been in an uptrend for several months, there has been almost no change in the price of cryptocurrencies.

There is still some more potential for crypto because the prices have been deliberately surpassed to "control the risk appetite" around the globe. Meanwhile, the stock markets went higher while crypto crypto was either going down or consolidating.

One of the most popular expectations from NASDAQ and other stock markets is that they will be in a consolidation period and the drop in the risky markets will hit crypto once again.

If this bad day scenario happens, we may test $700B once again with no issues because there will be more sell pressure on them. Yet, if the market goes. the value of things also get higher while there is an inflation problem in the fiat currency. I still want to think positive and jump into a bull market cycle after a sharp drop in prices. Basically, I expect 1 more purchasing opportunity ( a huge chunk with stablecoins) before it skyrockets.

What do you think about the volume and liquidity in crypto projects?

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Posted Using LeoFinance Alpha