"Risk off" sentiment in crypto market according to CoinMarketCap and Glassnode market report

By Stephan Roth on Monday 1 August 2022

Alternative LendingDigital Banking

This marks the first collaboration in a series of market insights to be released by both firms

Image source: AliceLiu/CoinMarketCap/RafaelSAchultzeKraft/Glassnode.

Price-tracker CoinMarketCap (CMC) and on-chain data company Glassnode have joined forces to publish a H2 crypto market report. 

On Friday, the On-chain Analytics report went live, starting the first in a series of monthly market insights set to be released between the two companies. According to the report, the crypto market is in the midst of a "risk off" sentiment, as the current bear market echoes the drought of 2018. 

Founded in 2013, CMC is considered the go-to crypto-asset price tracker in the space, attracting over 340m viewers to its site.

In April 2020, CMC was acquired by  crypto exchange Binance for £328m. 

Based in Switzerland, Glassnode has been in operation since 2017. In the five years since coming on to the scene, the firm has established itself as one of the premier on-chain data solutions in crypto. 

"With all the noise in the market, we think it’s time to take an analytical approach and look at the underlying health of the market," Alice Liu, research lead at CMC told AltFi. 

Central to the On-chain Analytics report is the analysis of bitcoin's bear market. As of June, bitcoin has fallen 74 per cent since reaching its all-time high in November 2021. 

However, as the bitcoin market has matured and grown in liquidity, so have the bear market bottoms decreased in their drawdowns from their all-time highs. 

In 2011, bitcoin was down 93 per cent, in 2015 and 2018 the flagship crypto slipped 84 per cent and in March 2020 the drawdown was 75 per cent. 

 

 

Ethereum, the second largest coin by market cap, has not fared much better, down 45.4 per cent in June.  

The report concludes that digital assets have experienced a shift towards "risk-on sentiment" over the course of 2022. 

Despite the bearish undertones of the report, Liu said: "We have already started to see an uptick this week in the crypto market again".

Following the Federal Reserves decision to raise its funding rate by 0.75bps, the crypto market has rallied 0.77 per cent. 

"With Glassnode providing such a comprehensive library of on-chain and crypto financial metrics, they'll help provide a holistic view of the industry," explained Liu. 

Outside of On-Chain Analytics, CMC Research will also look to bring in leading voices from the industry for thematic research endeavours. 

Glassnode has not responded to AltFi’s request for comment. 

 

Sign up for our newsletters


Your daily 7am download of all things alternative finance and fintech.

Fintech and alternative finance headlines with an exclusive Editor's Note each week. Delivered Monday at midday.

AltFi's new weekly US newsletter breaking down the ins and outs of America's burgeoning fintech sector. Delivered Monday 9am EST/ 6am PST.