Many traders are wondering if the bull run in the cryptocurrency market has ended. Price declines in various altcoins raise concerns and discussions among experts.
What’s Happening in the Crypto Market?
Recently, the cryptocurrency market has shown sluggish movement. Recent data indicates that some altcoins, such as PEPE and Solana, have significantly dropped from their all-time highs by 75% and 60%, respectively. This raises concerns about the state of the bull market.
Difference between Realized Cap and Market Cap
Ki Young Ju, CEO of Crypto Quant, believes that the Bitcoin bull cycle has ended, based on the Realized Cap metric. This metric accounts for Bitcoin movement between wallets as purchases and sales, allowing for an estimate of the average entry price. When Realized Cap is growing while Market Cap remains stagnant, it indicates a bear market.
Bear Market Signals
Currently, we see a situation where capital continues to flow into the market but prices remain stable or decline. This indicates a bearish trend. Historically, such a situation may last for several months before we see significant changes. Arguments from critics about the incompleteness of on-chain data, while potentially valid, do not negate current market trends.
Based on the analysis, it can be concluded that the cryptocurrency market is currently in a bearish trend, and a quick recovery does not seem likely.
