Bitcoin (BTC) and Chainlink (LINK) Bearish Market Diagnosis
);)
This decline occurred without any major bankruptcies or systemic collapses, and was seen as a sign of the maturity of the cryptocurrency industry.
Chainlink co-founder Sergey Nazarov said on OfficialX on the 10th that the current cryptocurrency bear market is different from the past.
Sergey Nazarov explained that a major institutional failure like the 2022 FTX collapse did not occur during this downturn.
The total cryptocurrency market capitalization has fallen by about 44% from its all-time high of about $4.4 trillion (KRW 6,409.4 trillion) in October 2023.
In just four months, approximately $2 trillion (KRW 2,913.2 trillion) was removed from the market.
Sergey Nazarov emphasized that this downturn did not result in a chain reaction of collapses of cryptocurrency lending platforms or major infrastructure.
He assessed that the industry has reached a point where it can absorb volatility more stably.
Another key factor cited was the growth of tokenized real assets (RWAs).
He explained that the on-chain integration of traditional financial assets and on-chain derivatives are expanding regardless of cryptocurrency prices.
According to data platform RWA.xyz, the on-chain RWA value has increased by approximately 300% over the past 12 months.
Sergey Nazarov said this trend shows that cryptocurrencies have independent economic value beyond mere speculative assets.
However, despite this industrial growth, the Chainlink coin price has not reflected this.
Chainlink is down about 67% from its October high and is trading below $9, about 83% below its 2021 all-time high.
There was also other analysis of the reasons for the overall weakness in the market.
Gautam Chhugani, an analyst at investment bank Bernstein, called the decline "the weakest Bitcoin bear market in history" in a report on the 10th.
Bernstein explained that the Bitcoin (BTC) price adjustment is simply a phenomenon due to weakening confidence, and not a sign of a structural breakdown.
The report analyzed that no core elements of the financial system collapsed during this adjustment phase.
It was further assessed that macroeconomic factors also had an impact.
BTSE exchange Chief Operating Officer Jeff Mei told Cointelegraph on the 10th that the sell-off was triggered by factors external to the cryptocurrency.
Jeff May explained that concerns about a correction in artificial intelligence technology stocks and uncertainty over the appointment of the U.S. Federal Reserve chairman have increased concerns about reduced liquidity.
He assessed that this adjustment was more due to changes in the global financial environment than to internal issues within the cryptocurrency industry.
Industry insiders agree that not all bear markets are the same.
Analysts are gaining traction that this adjustment is a testament to the structural evolution of the cryptocurrency industry compared to previous cycles.
Reporter Jeong Ha-yeon yomwork8824@blockstreet.co.kr
