Embracing the Beauty of this Bear Market
Bear markets have made people very wealthy. Though it is safe to assume that many traditional investors aren’t thinking that now may be the time to begin hoarding digital assets like Bitcoin, Ethereum or even Dogecoin. One standing fact of this market is that common, ordinary investors won’t come near it, not in its current state.
What the market is going through right now is…normal. What we are experiencing is an anticipated, if not long overdue, inflection point within a timeline of a market that is still on the path to maturity. In other words, these are healthy bear market conditions that will allow an over-hyped market to catch its breath, after 6-months of cryptocurrency mania. Believe it or not, investors have much to gain in an environment like this, whether they are disciplined investors with a long history of traditional stock trading or newbies who just want in on the digital currency action – the blood in the streets is being seen, by some, as the first real opportunity to buy cryptocurrency in a long time.
A Chance for Investors
This bear market presents a rare chance for investors to build their understanding of blockchain applications and consider more deeply the wide array of digital assets on the market and, using sound logic, make a trading decision in the absence of the freakish mania and omnipresent “FOMO” (Fear of Missing Out) factor that was so prevalent in the 2021 digital assets market.
The fact is the recent market crash has chased off a lot of money, including fresh money from would-be investors that were just on the precipice of the action before the market went south.
The Stratospheric Year of 2021
But every financial market, digital assets included, goes through a cyclical trend. In the two years leading up to 2021, a wide array of well-capitalised digital assets suffered huge losses, in some cases losing 90% of their value. I recall when Bitcoin was reigning at $20,000 but then deflated to a lethargic $3,000 at its nadir. Despite the market’s bellwether currency slumping more than 80%, it went stratospheric in 2021, starting the year under $30,000 and then reaching a peak of close to $70,000 in November of 2021.
Here is the lesson - every digital coin worth looking at has shed at least 50% of its value this year sending the market’s capital down from $3 trillion to just over $1.5 trillion. But with the right approach, and the right plan, this kind of a bear market presents one of the best opportunities in the history of the cryptocurrency market. Yes, cryptocurrency critics are back with full-throated vigour shouting “told you so!” but you know better. Let’s understand that the market requires days of carnage to pave the way for the heady days we had in 2021.
Author: Greyson Kelly
Greyson Kelly is a business writer living in Milwaukee, Wisconsin. He writes extensively on technological trends, cryptocurrency, and ‘cutting edge’ industry topics. He has an MBA in Business and has over a decade of experience in communications and public relations.