2022 has been a tough year for the crypto investor market with a harsh crypto winter. It all started with the collapse of the TerraUSD algorithmic stablecoin, which caused other major cryptocurrency players to fall like dominoes: Three Arrows Capital. Voyager Digital, Celsius Network, FTX, BlockFi.
Not a single project, protocol or institution this year has not felt the pain of contagion. Bitcoin futures volumes remain at multi-year lows due to tightening liquidity, widespread deleveraging and the dysfunction of several lending and trading desks in the sector. Open interest has undergone a similar shift following FTX’s devastating drop. Bitcoin miners also bled profusely.
Despite surprisingly large losses, the accumulation trend remains strong in this bear market.
HODlers are unfazed
Bitcoin is currently pegged in a tight range between $16,000 and $18,000 as the market continues to suffer from lingering macroeconomic uncertainty. Still, that hasn’t stopped investors from piling up their tokens.
According to the latest information from Glassnode version This year, the density of coin re-accumulation increased every time the market fell. Most notably, from $18,000 he earned $24,000 in coins from June to October. According to reports,
“2022 was a brutal year, pushing volatility and trading volumes to multi-year lows as liquidity and speculation dried up. The supply of has been pushed to yet another ATH, and investors seem to step in by increasing the amount of coins each time the price drops.”
While institutional investors are cautious, it is retail investors who are accumulating more and more Bitcoin. Actually recently data This suggests that nearly 17% of the total Bitcoin in circulation is currently held by retail investors. According to Glassnode, such a holder has less than his 10 BTC in his wallet (currently, at current prices he is worth $169,000). The percentage of bitcoin supply held by retail investors has been on an upward trend since 2011.
Sluggish mining earnings
Bitcoin mining has undergone dramatic changes this year after suffering severe income stress.Majority of Bitcoin’s Active Hashrates Turned Off, Difficulty autumn The most recent increase is 7.32%.
While many operators have taken their ASIC rigs offline over the past few months, several other miners are bankrupt or close to bankruptcy. Compute North was the first company to file for bankruptcy in September.
Three months later, another prominent Bitcoin miner – Core Scientific – submitted For Chapter 11 bankruptcy protection in Texas. Greenidge also asked her NYDIG to prepare a restructuring of her $74 million financial debt, but bankruptcy is still a possibility.