According to data by CryptoCompare Digital Assets Indices, the majority of cryptocurrencies have faced a rough beginning of the year. Up until the 27th January 2022, Bitcoin and Ether dropped 23.3% and 36.9%, respectively while most alternative cryptocurrencies continued to fall from the all-time highs that they reached in early November.
Additionally, total assets under management (AUM) for all aggregate exchange and OTC-traded products have witnessed a drop to $43.9 billion in January. This represents a 25.1% drop since December and an even further decline from the high of $74.7 billion in October last year. Bitcoin products AUM have reduced to 23.3% ($29.9 billion) while Ethereum experienced a bigger fall of 29.2% ($11 billion).
In addition, the average daily trading volume dropped in line with the decline of AUM experienced in January, falling 14.5% to $481 million. VanEck’s VETH and Grayscale’s ETHE Ethereum products witnessed the largest decline, which is down 38.9% ($3.91 million) and 34.8% ($139 million), respectively.
January 2022 has been the first month to see average weekly outflows since August 2021. Digital asset investment products have witnessed outflows for the first time since August. In January, weekly outflows averaged $88 million as a result of the increasing inflation in the U.S. While average weekly outflows reached $88 million with a record $207 million of outflows in the first week of January, which is the highest outflows since the first week of June ($238 million).
The Reality of Crypto Investing
This is not the first time that the digital asset market has taken a big plunge. From mid-May to mid-July last year, cryptocurrencies went through a big decline, with Bitcoin dropping over 45%. Despite such volatility, many investors are still showing interest in digital assets. As the adoption of cryptocurrencies rises, these coins will become more stable. However, investors should know that crypto crashes are normally part of investing in cryptocurrency. Therefore, investors should determine the time frame for holding their coins and know whether they can take the risk when markets turn downside. Apart from that, crypto markets normally behave like traditional markets because of the traditional adoption that has taken place over the previous few years. Crypto assets nowadays appear to correlate to the stock market.
According to data by CryptoCompare Digital Assets Indices, the majority of cryptocurrencies have faced a rough beginning of the year. Up until the 27th January 2022, Bitcoin and Ether dropped 23.3% and 36.9%, respectively while most alternative cryptocurrencies continued to fall from the all-time highs that they reached in early November.
Additionally, total assets under management (AUM) for all aggregate exchange and OTC-traded products have witnessed a drop to $43.9 billion in January. This represents a 25.1% drop since December and an even further decline from the high of $74.7 billion in October last year. Bitcoin products AUM have reduced to 23.3% ($29.9 billion) while Ethereum experienced a bigger fall of 29.2% ($11 billion).
In addition, the average daily trading volume dropped in line with the decline of AUM experienced in January, falling 14.5% to $481 million. VanEck’s VETH and Grayscale’s ETHE Ethereum products witnessed the largest decline, which is down 38.9% ($3.91 million) and 34.8% ($139 million), respectively.
January 2022 has been the first month to see average weekly outflows since August 2021. Digital asset investment products have witnessed outflows for the first time since August. In January, weekly outflows averaged $88 million as a result of the increasing inflation in the U.S. While average weekly outflows reached $88 million with a record $207 million of outflows in the first week of January, which is the highest outflows since the first week of June ($238 million).
The Reality of Crypto Investing
This is not the first time that the digital asset market has taken a big plunge. From mid-May to mid-July last year, cryptocurrencies went through a big decline, with Bitcoin dropping over 45%. Despite such volatility, many investors are still showing interest in digital assets. As the adoption of cryptocurrencies rises, these coins will become more stable. However, investors should know that crypto crashes are normally part of investing in cryptocurrency. Therefore, investors should determine the time frame for holding their coins and know whether they can take the risk when markets turn downside. Apart from that, crypto markets normally behave like traditional markets because of the traditional adoption that has taken place over the previous few years. Crypto assets nowadays appear to correlate to the stock market.
- 2022
- 7
- 9
- Adoption
- All
- asset
- Assets
- AUGUST
- average
- Beginning
- Billion
- Bitcoin
- Coins
- crypto
- Crypto Markets
- crypto trading
- CryptoCompare
- cryptocurrencies
- cryptocurrency
- data
- digital
- Digital Asset
- Digital Assets
- down
- Drop
- dropped
- Early
- Ether
- ethereum
- exchange
- faced
- First
- first time
- Global
- High
- HTTPS
- inflation
- interest
- investing
- investment
- investor
- Investors
- January
- Line
- Majority
- management
- Market
- Markets
- million
- most
- Products
- Reality
- record
- represents
- Risk
- stock
- stock market
- Through
- time
- Trading
- traditional
- u.s.
- volume
- week
- weekly
- year
- years
