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The American entrepreneur and founder of Cardano – Charles Hoskinson – opined that ADA (the native token of his blockchain protocol) has been underperforming recently because crypto is in a bear market. In his view, nothing can move the USD valuation up during the current situation.

Bear Market is Here

2022 and especially the last few weeks have not been kind to the cryptocurrency industry as the prices of most digital assets are far away from their top levels registered in 2021. There are numerous reasons for the crash, including the post-pandemic financial crisis and the Russia-Ukraine war.

Addressing the matter and providing his view on why crypto has headed south was Cardano’s founder – Charles Hoskinson. In a recent tweet, the American claimed that digital assets had entered a bear market. Speaking of the USD valuation of his protocol’s native cryptocurrency, he argued that nothing could boost its price up right now.

“Yes, it’s called a bear market. That’s what happens. Nothing changes it. No announcement makes a difference. Cardano could cure cancer[…] give you a personal poker-playing robot that also drives grandma to church on the weekends, and we’d still fall.”

Hoskinson’s words come amid his project’s latest updates, which have had a little-to-no positive impact on ADA’s price. As CryptoPotato reported recently, Cardano outlined several updates for its network, including the launch of a cross-chain bridge. Later on, it revamped its block size by 10% to improve scalability.

At the same time, reports claimed that whales were on a buying spree at the start of the month, but that didn’t push ADA north either. The asset charted an ATH last autumn above $3 before the market-wide crash drove it south hard. As of now, it struggles at $0.65, meaning that it has dumped by about 80% since the peak.

More Bear Market Confirmation?

Another factor that might confirm the bear market fears comes from CryptoQuant’s most recent analysis. The analytics platform estimated that the bitcoin bull market halted in July 2021, and ever since, the trend has changed.

The company’s analysts attributed it to the Fees to Reward Ratio. The higher the ratio is, the more lucrative it is for miners to do their job as they don’t need to be further incentivized to hold to their BTC and vice-versa. Since the metric has plummeted since the April 2021 highs, CryptoQuant determined that it is an “indication of a bear market,” and miners have to sell some of their portions to cover their expenses.

Bear Market Chart, Source: CryptoQuant

One thought on “Cardano’s Charles Hoskinson: We Are in a Bear Market

  1. First of all, I am the sole breadwinner with three children. Before I started investing, there was never a penny left at the end of the month and i had to change hard on myself and the family organization to have something left over at the end of the month. So even if I lost 70 percent of my portfolio, there is a rest of the money and even if there was nothing left, it doesn't really matter, because there was never a penny left before.

    What you need to realize is that you had the ability to put money aside at all and that you are one of the few people in this world who are even able to do it because of your good life situation. Just the fact that you are reading this at the moment makes it clear that you are assured of a certain standard. Instead of worrying about things you can't change, be happy that your options have been good so far. There are many things that are more important than money, even if the world sometimes tells us otherwise. In the end you can't take anything with you, neither money nor luxury, real estate or gold.

    Enjoy every day, be happy about your health and do good things. Give love to your wife and children and enjoy the little things in life.

    I know this is all going to sound silly at first, but things will change over time and our world can only get better if we give good things. I wish you the best.

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