The year 2022 demonstrated the diverse features of the crypto space as well as market participants such as short-term holders, long-term holders, whales, as well as strong and weak hands. While the strong hands continued to amass wealth, the weak hands continued to extract profit at every turn.
At the beginning of the year 2022, the market capitalization was trading around $2 trillion. However, the deadly market crash led by the LUNA-UST crisis, dragged the levels close to $1 trillion. Woefully, the levels have dropped below the levels, presently and manifest the possibility to bottom hard in the coming days.
Well, the steep drops are speculated to have been led by the weak hands, who may be wiped out in 2022.
According to santiment data, the weak hands have been liquidating their assets in order to make small profits and thus chase short-term bounces. This is primarily due to Bitcoin‘s and Ethereum‘s social dominance. According to the data, the rate of market participants discussing cryptos on social media platforms has been drastically reduced.
Presently, the BTC dominance has dropped below 14% while that of ETH is below 8%. The BTC price and the entire crypto space may turn bullish only if these rates surge beyond 20%. As a result, long-term traders are fairly confident about the upcoming rally after Bitcoin regains mainstream attention. Hence, a fair upswing may ignite at any moment in the next couple of months.