The Bear Market Is Upon Us

American entrepreneur Charles Hoskinson, founder of Cardano, stated that ADA (the native symbol of his blockchain protocol), has been performing poorly recently due to crypto’s bear market. He believes that nothing can change the USD valuation in the current market.

Bear Market is here

The cryptocurrency industry has not had a good year in 2022, and particularly the last few weeks. Most digital assets have fallen far below their peak levels of 2021. The crash can be attributed to many factors, including the financial crisis after the pandemic and the Russia-Ukraine conflict.

Charles Hoskinson, Cardano’s founder, addressed the issue and offered his opinion on why crypto has gone south. The American stated in a recent Tweet that digital assets were entering a bear market. He spoke out about the USD valuation of his native cryptocurrency.

It’s known as a bear market. It happens. It doesn’t change. It doesn’t matter what announcements you make. Cardano could help cure cancer give your a personal poker-playing machine that drives grandma to church on weekends and still falls.”

Hoskinson’s words are among the latest updates to his project, which have had a minimal-to-no impact on ADA’s price. Cardano had presented several updates to its network, including the launch a cross-chain bridge. It also increased its block size by 10% in order to increase scalability.

ADA was not affected by reports that whales were buying on a spree at the beginning of the month. Before the market crash, the asset had a ATH of $3 last autumn. It is currently at $0.65, which means that it has fallen by around 80% since its peak.

More Bear Market Confirmation

The latest analysis by CryptoQuant may confirm bear market fears. According to CryptoQuant’s most recent analysis, the bull market in bitcoin was halted on July 2021. Since then, the trend has changed.

Analysts at the company attributed this to the Fees-to-Reward Ratio. As miners don’t have to be incentivized further to keep their BTC, the higher the ratio, the more profitable it is for them to do their jobs. CryptoQuant has determined that the metric has fallen since its April 2021 highs. Miners must sell some of their holdings to pay their expenses.