The crypto bulls have to work a lot harder to experience a surge in their value

Bitcoin's value fell by more than half of its value since its all-time highs in November 2021, leading to a major crash in the entire cryptocurrency market. Meanwhile, as soon as investors had started to recover from Bitcoin's fall, Terra and TerraUSD massively wounded the rest of the market by declining further below. The fall of the Terra ecosystem spilled a wave of fear and chaos leading to an early self-off season. This weak sentiment had spread across the crypto market resulting in investors withdrawing their money and dumping their investments. According to market experts, Bitcoin and Ethereum, the two most valuable assets in the market have decreased by more than 40% since mid-November of 2021. In recent times, the price of Bitcoin has fluctuated more than any investor could have ever imagined. As the crypto is set around the US$29,000 mark, investors feel relieved thinking that the crypto has finally stabilized, but experts predict that Bitcoin is due for more fluctuations. Recently, reports have revealed that the total crypto market cap is down by almost 43% within a period of just two months. But the market will soon regain its glory if certain metrics are set straight.

The crypto market cap has been ranging from US$1.19 trillion to US$1.36 trillion for a period of 20 to 23 days. At this point, Bitcoin witnessed a gain of 3.5%, whereas, Ethereum experienced a gain of about US$1.6%, which somewhat relieved the investors. But the cryptos fell back again! Besides this, the fears of regulation continue to weigh over investors' crypto-buying preferences. BTC's decline since November's high has approximately blotted out about US$600 billion in market value and over US$1 trillion from the broader crypto market. Turmoil in stablecoins has introduced the added misery of greater liquidity in cryptocurrencies.

The Important Metrics to Consider in this Bear Market

No investor would like to face a bearish crypto market as they destroy portfolio value and possess a high tendency to cause financial losses to its investors. But one of the most profitable aspects of a bearish crypto market is that it provides investors with the time to reconsider their investments and research more on other profitable projects that might thrive when the prices surge again.

The Fear and Greed Index is a data-driven sentiment gauge that clearly depicts the bearish sentiment of the crypto market. The indicator has consistently maintained its position below 20 since May 8, as the crypto market touched its lowest levels when it lost US$1.7 trillion. According to reports, Cardano continues to gain 19% as the Vasil hard fork is waiting for its launch quite soon. The upgrade aims to improve scalability and ADA's smart contract functionality by galvanizing deposits over the decentralized network.

Major altcoins like Solana fell more than experts could have ever been anticipated. SOL has been constantly facing network issues for a period of seven months.

Besides these issues, the situation around Tether has also been quite challenging for the crypto market and its investors. The re-launch of the LUNA 2.0 protocol has not been helping because LUNA users as still speculative and skeptical about its future. Most of the long-term crypto buyers have left the crypto market or are also choosing other centralized, traditional assets to avoid further financial accidents.

Bottom Line

There are several price metrics that need to change for the crypto market to rise again. Experts believe that the research they conveyed posed evidence of more downsides. This is mainly because of the slightly higher conditions of altcoins on the bearish levels and also due to the evident lack or loss of interest in investing in cryptocurrencies from the Asian retail markets. It is evident that crypto bulls have to show much more capability to attract more investors in the market.