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A bear market in any industry is when a market that shares prices is decreasing and encouraging sales. There have been many bear markets on the history of cryptocurrency, all with different durations. In this article, we will examine some of the factors of bear markets and how they affect all cryptocurrencies.
What is a bear market?
The market turns into a bear market only when prices fall due to doubts and fears. In a bear market, the downward trend in prices becomes self-sufficient, with investors worried about selling because of FUD (fear, uncertainty and doubt).
Bearish markets should not be confused with bull markets, where prices do the opposite and rise. These markets do not occur only inside the crypto. They also appear in stocks and stock markets.
The cryptocurrency bear markets are different from those of shares and stocks, however. As mentioned, they are mainly triggered by the sale of panic caused by the FUD, but it is not the only reason. The negative news on cryptocurrencies also cause a market spiral. When this happens, the sales volume becomes larger than the purchase volume, causing prices to fall.
Current bear market
The current bear market has erased $ 250 billion from the market value of the largest cryptocurrency, Bitcoin. The total value of all cryptocurrencies fell by over $ 700 billion, which made this bear market not to be missed.
However, John McAfee has high hopes for what blockchain and cryptocurrency can get after the bear market. "The bear market is artificially created by those powerful entities that fear cryptocurrency, but they can not control it when it's out of Pandora's box, and it will never come back," he said. "So whether you like it or not, they will have to live with it in the end."
The downward current criptovalute market has seen a large number of projects halt development until the market rewinds. However, this is not the case with Veritaseum, which continues to innovate to bring about fundamental change in the global distribution of wealth.
Bitcoin in bear markets
One of the biggest problems in virtual currencies is their volatility. Cryptocurrencies are known to fluctuate highs and lows within the market. The largest cryptocurrency, Bitcoin, is known for having large increases and decreases in prices. The year has risen to $ 19,000, while today (at the time of writing), the price of Bitcoin is $ 3,480.
Although Bitcoin is only 10 years old, he has seen his fair share of bear markets. The most recent is called "winter crypt", which made Bitcoin slip below $ 3,500 for the first time in 14 months.
Surprisingly, this is not the worst Bitcoin barrier market. Bitcoin struggled in the first bear market in 2012, where its value fell to $ 4.22 with a 40% decline.
Conclusion
When a bear market occurs, opportunities are opened for economic entry points for new cryptocurrencies. However, this does not mean that there will only be one chance to do it. With bear markets that occur regularly, there will always be times when the market is more easily accessible.
According to Azzad Asset Management, the average bear market lasts about 15 months. So put on the kids, we're here for the long run.
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