The global cryptocurrency market capitalization shrank 7% over the past day to fall below the important $1 trillion benchmark which now stands at $996.2 billion.
According to well-known crypto analyst Willy Woo, the recent fall in cryptocurrencies has had a major impact on short-term investors who have a lower cost base than long-term investors.
Meanwhile, Woo revealed that the current state of the crypto market is not as bad as in previous years because the market only reached 52% of tokens, while the last record lows were 61%, 64% and 57%.
He also mentioned that history does not need to be repeated in this case following the provision of future hedging* that has not taken On-chain* until now.
* Hedging is opening trades strategically so that gains or losses in one position are offset by changes to the value of other positions
* On-chain is a transaction that takes place on the blockchain shown on the distributed public ledger
Even so, one of the signals that Woo observed before the capital rotation came back in was that the supply in the profit trend line had broken in all parts while the crypto market was in a bearish state.
After the US inflation data was published on Tuesday, the price of Bitcoin has fallen by up to 10% and is hovering back in the $20,000 zone.
