A recent Bank of America report explains how Bitcoin is holding up well to the blows of this bearish market.
💥BANK OF AMERICA: Bear market hasn't affected investors interest in #Bitcoin or crypto.
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) June 28, 2022
Bitcoin appears to be resilient to the crash according to Bank of America
Investor interest in crypto, especially in Bitcoin, is not experiencing significant losses; in fact, it is holding up well. In a report, Bank of America explains that when it surveyed 160 investors, these are not afraid and believe that:
“Blockchain technology and the digital asset ecosystem are here to stay”.
Some interviewees also reportedly explained that many of the most interesting projects in the sector would be born during Bear market periods and that in any case this is something “healthy for the ecosystem’s development over the long term”.
In another report, Glassnode specifies how Bitcoin and cryptocurrencies have lost nearly $600 billion in capitalization, settling back down to one trillion.
According to the report, Bitcoin is in the midst of the largest capital outflow since its inception to date.
A significant number of digital currencies have lost more than half their dollar value since November, and Bitcoin is down 70% from last year’s all-time high.
The bottom of the barrel is far from being reached according to Glassnode and there is still margin on which someone will speculate.
The analysis reads:
“When prices are trading below the 200DMA, it is often considered a bear market while when prices are trading above the 200DMA, it is often considered a bull market. The 30-day position change of the realized cap (Z- Score) allows us to visualize the relative monthly inflow / outflow of capital into the BTC asset on a statistical basis. With this measure, bitcoin is currently experiencing the largest capital outflow event in history, hitting -2.73 standard deviations (SD ) from the average. This is an entire SD larger than the next larger events, occurring at the end of the 2018 bear market and again in the March 2020 sell-off”.
Continued growth in capitalization, interest, and especially attention from institutional players has brought changes.
The report explains:
“As the bitcoin market matures over time, the magnitude of potential USD-denominated losses (or profits) will naturally increase along with the growth of the network, however, even on a relative basis, this does not minimize the severity of this loss. net of over 4 billion dollars”.
Bitcoin was not the only player featured in this spotlight placed by the company. Ethereum turned out to be a major player as well:
“Ethereum’s prices spent 37.5% of its trading life in a similar regime below the realized price, a stark comparison to bitcoin at 13.9%. This is likely a reflection of BTC’s historical outperformance during bear markets. , as investors draw capital higher up the risk curve, leading to longer periods of trading in ETH below the investor’s cost bases”.
Finally, the report draws the conclusion that, given the industry’s billions in losses, its duration over time, and percentage changes, this is the most significant drop for this asset ever.
Binance in the NFT world with Ronaldo
In the face of such negative signs, the sector remains an object of interest and indeed, of strong investment. These days came the news that Binance has made a multi-billion dollar partnership with soccer player Cristiano Ronaldo involving NFTs. The popularity and fanbase of the sportsman will greatly broaden the investor base in the asset.
Another important sign is the opening of the Russian market to cryptocurrencies with a new law on their taxation that places it among the most pro-crypto countries in the world but there is more.
The gradual opening of markets to BTC payments and digital currencies in general has led a variety of brands especially in the luxury world (fashion, cars, residences, etc…) to open up to these.
Luxury brands entering the NFT and crypto world.
The latest in order of time is the case of Breitling, the Swiss luxury watch company that has started giving the possibility on its site to make BTC payments to its customers.
The cryptocurrency payment service provider BitPay will be responsible for providing the option to customers who to date have one more tool to access their pieces.
Breitling’s opening is not new in this industry, which has previously made this possible with brands such as Tag Heuer and Hublot, but even in fashion there are those who accept Bitcoin.
The e-commerce Farfetch, Balenciaga, and Gucci are all examples of BTC-friendly brands.
As for the automotive sector besides the famous Tesla, there is also the possibility of buying a car online with crypto through Post Oak Motor Cars with loans secured in Bitcoin.
The spread of these possibilities especially online only bodes well for the future, they normalize a type of payment that has always been viewed with suspicion and it is a curious case that the normalization comes from the world of luxury and does not start from the bottom, this is the first economic revolution that starts from the top one would say.