Bears Remain in Control of the Crypto Market

News Background

Claims that the crypto market is dead or nearing its end are appearing with increasing frequency on social media. Santiment believes that this situation, against a backdrop of growing pessimism, may be attractive to long-term buyers.

The crypto market has entered the final phase of the bear cycle. According to estimates by DeFi Report, around 85 per cent of the cycle is already behind us, and how the situation develops from here will depend on global macroeconomic events.

Under a new methodology, the Bitcoin treasuries of Strategy and Metaplanet could be excluded from MSCI indices for holding non-operating assets. No decision has been made yet, and MSCI is gathering feedback until 30 September, promising to publish the results by 16 October. JPMorgan previously estimated a potential outflow from Strategy’s securities under such a scenario at $2.8 billion.

According to estimates from Miner Weekly, public Bitcoin miners have reduced their hash rate by 21 per cent over three quarters due to redeploying capacity to AI infrastructure. The current decline is attributed to a weak mining economy and competition for capital and electricity from the AI sector.

FG Nexus, which held 50,000 ETH, sold off its entire cryptocurrency holdings and wound up its Ethereum strategy less than a year after its launch. The total net loss from holding crypto assets reached $45.2 million. Income from staking amounted to just $144,000.