Why?
Well, for starters, you can now buy your favorite cryptocurrencies at huge discounts.
For example, if you liked Ethereum when it was at $4,000 a few months ago - you probably
really like it at $1,000 today - a near 75% discount!
So for the long-term crypto bulls - the low prices in the bear market spell opportunity.
Remember - buy low, sell high.
Another reason to feel grateful and optimistic -
The crypto markets are going through a gigantic cleanse.
When humans cleanse - we get rid of toxins and align our bodies with optimal health.
That’s what’s happening in crypto right now.
The broken platforms are breaking. The riskiest players are getting exposed.
And what’s left in the end will be a healthier crypto market - ready for the next big adventure
And lastly, we are feeling grateful and optimistic about this bear market because…
We've been here before!
Bitcoin has been here before.
This is not the first crypto-winter.
And history suggests that good things follow a crypto bear market.
Let’s take a closer look at the history of Bitcoins bull and bear market cycles...
Bitcoin is currently in its 4th bear market.
In its most recent cycle,
- Bitcoin fell from a high of $19K in 2017
- To a low of $3K in 2018.
- A drop of 84% from the top.
The bear market before that, 2014 - 2016, Bitcoin dropped 85% from the top.
And the one before that, 2011 - 2012, Bitcoin dropped 93% from the top.
Here’s a little fun fact - Did you know that to date - Bitcoin has been pronounced dead 459 times.
Can you believe there’s even a website that tracks this stuff!? :)
But guess what…
Every time so far, Bitcoin and the crypto markets bounce back… and historically speaking, they bounce back with a vengeance.
Let’s look at the charts again.
● We can see that Bitcoin reaches a high of around $19K in the bull market - 2017.
● It then crashed down to $3K, in the bear market - 2018.
● Before rallying up to $69K in the bull market - 2021.
And in the cycle before that…
● Bitcoin peaked at $1,200 in the bull market - 2013.
● Crashed to $175 in the bear market - 2015.
● Then rallied all the way up to $19K in the bull market - 2017.
Let’s take a look at Bitcoins chart most recently.
● Bitcoin reached a high of $69K in the bull market - 2021.
● Then it crashed to $19K in the bear market - 2022
● Where it’s currently trading sideways at around $20K
The million dollar question… where do the crypto markets go from here?
Does Bitcoin go lower than $20K? Does Ethereum go lower than $1K?
It’s possible..
But historically speaking - the bottom of the bear market is aligned almost perfectly with the high price set in the previous bull cycle.
For example -
● During the 2017 bull run - Bitcoin reached a high price of around $19K.
● Now in the 2022 bear market - Bitcoin has found a local bottom around $20K.
History also tells us that the average length of a crypto bear market is about 7-8 months.
Some experts are preparing for a longer crypto winter that could last anywhere from 12-18
months.
Why?
The macroeconomic conditions are the worst they’ve ever been since Bitcoin was
launched in 2009.
There’s really no telling how long the current bear market will last.
Besides having the right market conditions in place - it typically takes a major event in crypto to end the bear cycle - and jumpstart the next bull run.
In the past - the major catalyst has always been the Bitcoin halving - (where Bitcoin block
rewards are cut in half), which occurs approximately every four years.
The charts are pretty clear - The Bitcoin halving happens - the markets start a bull rally.
The next Bitcoin halving isn’t until May, 2024.
It’s possible we could be sitting in bear-market-limbo for a few more years.
But the upcoming Ethereum Merge is like a Darkhorse waiting in the wings.
The Merge - which is expected to occur sometime in Fall or Winter, 2022 - has the potential of
being the single most important event in crypto since the launch of Bitcoin in 2009.
Here’s why the Ethereum Merge event will be so significant:
1. Ethereum switches from a Proof-of-Work blockchain to Proof-of-Stake - addressing the
major energy concerns inherent to a proof-of-work blockchain, like Bitcoin.
2. Ethereum will become a deflationary asset - there will be more ETH being burnt than
being issued.
3. The yield from staking ETH will increase.
It’s a triple-whammy - or as some call it - “The Triple Halving”.
its very well may be the catalyst we need for cryptocurrencies' next big run.
In summary:
The crypto markets are down bad. An ugly mix of bad macroeconomics and degenerate
crypto activities by a handful of actors has crypto prices trading at 4-year lows.
“The time to buy is when there’s blood in the streets”. Or, maybe a softer way of saying
that is - “buy low, sell high” if you want to make a profit.
Historically, when the bear market ends, crypto bounces back with a vengeance. So
make sure you’re ready.
Now it’s time we check in with some experts and hear what they have to say about why now is the best time to invest in the RIGHT crypto assets.
Commentaires