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Is The Bear Market Finally Over?

The world has come to accept that cryptocurrency is rapidly gaining waves as a digital currency. As more people have made up their minds to join the ranks of investors to buy Bitcoin and other alternative coins, there are some things to consider, such as the ‘bear market’. 

However, some investors and potential investors are skeptical and even ask the big question “is the bear market finally over?” No, the beat market isn’t over yet.

So, in case you wish to know more about what you should be expected about the bear market, keep reading this post.

Origin of the Term Bear Market

The origin of the term ‘bear market’ refers to the basic attack mechanism of the animal. A bear will usually swipe downwards when it wants to attack. The bear market is a term used to describe a negative trend in the prices of a market.

It doesn’t just happen in the cryptocurrency market but also in the traditional market scene that encompasses stocks, real estate, and others. It is a significant market downtrend that presents a major fall in prices over a while. 

A bear market is the opposite of a bull market. The origin of the term ‘bull market’ refers to how a bull attacks, which is to thrust its horns up into the air. In a bull market, there is a significant positive trend in the crypto market where investors experience a high return on Interest (ROI) over some time. 

Historical Analysis of the Bitcoin Bear Market

To answer the question, no the current bear market is not over yet. Bitcoin was introduced in 2009 and since then has experienced at least three to four bear market cycles which are followed by bull cycles. 

From November 2013 to January 2015, Bitcoin fell from about $1,163 dollars to $155. This lasted a duration of 1 year and 2 months which resulted in an 86.2% loss. The bull market was from 14th January 2016 to 17th December 2017. 

It increased from $155 to $19,700 which was an all-time high then. The duration was 1 year and 11 months with an ROI of about 12,700%. 

Another bull cycle occurred from 15th December 2018 to 10th November 2021. It skyrocketed from $3,120 dollars to $69,000 dollars in approximately 2 years and 11 months yielding 2,111% ROI. Due to COVID-19, it took longer than expected

Currently, a lot of people want to buy Bitcoin since it is currently in another bear market at a value of about $21,000. It seems the market trend is that after every bull market is a bear market. On average, these bear markets tend to last about 1-2 years and hover around 80% loss before the market eventually bounces back. 

What are investors saying about the bear market?

According to a recently published article on Forbes, investors say that the bear market could last for the next two years. Especially based on the history of cryptocurrency and the charts. 

Avichal Garg, who is a managing partner at Electrical Capital, says “the next two years will be rough, especially due to the potential recession which may happen next year.” Electrical Capital is a cryptocurrency investment fund that has more than $1 billion in assets. 

Alex Pack, who is a managing partner at Hack VC, which is a $200 million crypto venture fund in assets, says “One to two years is what everyone is saying … and that is what we are telling our portfolio companies to make sure you have two years of runway.”

What to do in a cryptocurrency bear market?

There is no question that the year 2022 has been a tough year for cryptocurrency investors, whether on a small scale or large scale. You may be overwhelmed by the market volatility and are uncertain whether or not to invest. 

First of all, do not panic. It is important to take the time out to analyze market trends and make logical decisions to take advantage of the bear market so they don’t lose out completely. 

Conclusion – Is The Bear Market Finally Over?

The cryptocurrency market is not just based on people’s opinions or predictions but on history. You should have your perceptions and carry out your analysis. 

Take the necessary time to study the fundamentals that affect the market. Such as the FOMC (Federal Open Market Committee) which discusses the monetary policy of the United States and the impact this has on cryptocurrency, transaction values, the risk involved, etc. After learning the basics, the technical aspect comes in such as charts, market analysis, etc. 

Investors can use this information to predict the next bull market. This year’s bear market started on 10th November 2021 and is expected to end between 10 months to 1 year, that is September to December 2022. Bitcoin is not expected to fall below $10,000 to $15,000. 

Note that this is not a piece of financial advice but it is based on an analysis of the history of the bear market and bull market cycles. All investors are advised to carefully think about what they can afford to risk before they invest in the market to buy Bitcoin. 

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