When Will the Bear Market Be Over?
Welcome to the latest issue of CapitalRollup Digest! Today’s digest is for July 6th and it should take you about 5:00 minutes. We’ll get right to it.
- What does the Market Look like today? (Top 5/10 popular Cryptocurrencies)
When will the bear market be over?
After a few days of crypto prices going up and the total market valuation crossing $1 trillion, prices have dumped back with $BTC back below $20,000, and $ETH ranging around $1000. One question continues to linger on the minds of crypto investors, when will the bear market be over?
Today, we are going to attempt to discuss the crypto bear markets, what causes them, and when they might be over.
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But first, what’s a bear market?
According to Investopedia, a bear market is when a market experiences prolonged price declines. It typically describes a condition in which securities and commodities prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment. A bear market is a market condition in which securities or commodities are persistently declining in value**.** The opposite, when assets are steadily rising over a period of time, is a “bull market.”
While the definition has been mostly used to describe traditional assets like the stock market, it also works for asset classes like cryptocurrencies.
By the above definition, this means we have been in a crypto bear market since Q4 2021 when the price of $BTC dumped from its all-time high of $68,000 and now currently sits below $20k.
In 2022, Bitcoin is down -35%, ether is down -43%, some other coins by 90% while some have been totally eradicated from the market.
It is important to note that a bear market can last for years or just a few weeks.
How many Crypto bear markets have we had?
According to the bear market definitions, there’s been a total of 4 crypto bear markets over the course of Bitcoin’s existence
The first bear market happened on January 11, 2012 — July 11, 2012, when Bitcoin dropped from its peak price of $7.08 to $4, with a 40% drop in price. The second bear market also happened in 2012 between August and December, when Bitcoin lost 37% of its value, dropping from a price of $13.35 to $8.4.
The third Crypto bear market lasted over 415 days from November 2013 to January 2015, with the $BTC price dropping from its peak price of $1194 to lows of $197.24 losing over 83% value in the process.
The 4th crypto bear market of 2018 which lasted throughout the entire year is still referred to as the worst one for investors because the price dropped from its previous all-time high of $19,114 to $3,252 losing over 80% of its value while Ethereum dropped from $1,396 to $86.
The 4th bear market also resulted in the death of many crypto and web3 companies.
When will the 2022 bear market be over?
As we have seen, regardless of how long they last, every bear market always comes to an end. The question right now is when this current one will come to an end.
Despite the current reduction in crypto assets value, there are still indications that this is not the end, and prices might still drop 15% to 20% from their current value. This means that we could see bitcoin at $15,000 as mentioned above. The BTC price has slashed by nearly 75% from its highs and is expected to plunge by another 10% to 15%.
This might mean that will it take a while to see Bitcoin, Ethereum, and other crypto assets at their all-time highs of 2021 or maybe a 50% increase from their current value.
However, there’s been a few positives despite the undergoing market condition that suggests that crypto will definitely not die out such as;
- the current active Bitcoin wallets
- an increase in the number of wallets that have purchased their first ever Bitcoin
- companies accepting crypto payments and
- the continuous purchase of Bitcoin by major holders. -
Closing out
Nobody truly knows when the bull market will be back, however, speculations continue to predict that we might be out of this current cycle before the year ends.
Collectively, the bear markets cause huge losses on investment gains and profits, they are however required to prevent crypto from being inflated. Moreover, new participants also jump in which raises the adoption and demand.
If you’re looking for how to invest during the bear season, we wrote something that might be helpful. Check here.
•Trivia 🤔
What should investors do during a bear market?
A. Talk with their financial advisor.
B. Evaluate their risk tolerance
C. Consider opportunities created by a falling market.
D. All of the above.
Find the answer in the next issue of CapitalRollup Digest. 😉
The answer to the last trivia was A.) It is not controlled by a government or organization
Crypto Word Of the Day!
💡 Bear or Bearish
Being bearish is the opposite of being bullish. It is the belief that the price of an asset will fall. To say a trader is “bearish on stocks” means they believe the price of stocks will decline in value.
The term used in a sentence:
— A bear market occurs when an investment’s price is falling called a downtrend.
- Community Update 📢
We organized a Twitter Space session with 3 industry leaders where we discussed “Share your Bear Market experience & CeDeFi implosions”, you can listen to it right here
•What We Are Reading Today 📰
Are We in a Bear Market? Here’s How to Tell. Read more
Bear Market: Definition, Duration, How To Invest. Read more
Learn and invest in Crypto with friends 💰
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