Are we now at the start of the crypto bear market?

The cryptocurrency market has been steadily declining over the past few weeks and today the overall market value has fallen by 8%. With the movement of this price, some speculate that the bear market has started, while others have hoped that it may rise further. The truth will be out there, which may have something to do with the COVID-19 reversal and the horror of the industry.

Over the past eight years, the cryptocurrency industry has followed for four years. Usually there will be an annual market and most cryptocurrencies will strike all the time. Over the next three years there will be a bear market and the market value of cryptocurrencies has fallen by over 50-75%. These trends occurred twice in 2014 and 2017, and are expected to reappear as early as 2022.

This analysis makes sense at first glance, as Bitcoin drops around $ 3,000 and exceeds $ 60,000 in 2021, because the price difference has not disappeared, see another three years from 2017. If the story repeats as usual, 2022 will be the same in early 2018 and the start of the big bear industry that will continue until 2025.

While this can be an incredible guess, it cannot capture the current state of the cryptocurrency market. Unlike 2018, 2021 will see massive adoption and commercialization, which will attract more investors to the cryptocurrency space, while increasing public awareness of NFTs and Dogecoin. . History will not repeat itself and cryptocurrencies will rise further as some believe this new adoption will help boost the cryptocurrency market. Moreover, when they see a global investment model, many people follow the race to make money. However, this type of investment is less profitable than the investment models once seen and used often without recurrence. This deal could help explain why the price has only fallen recently, and why Bitcoin is still expected to hit $ 100,000 in the short term.

The facts about the current state of the market will revolve around these two assumptions. While the pattern will not repeat itself in financial markets, it is also true that an understanding of the market will emerge that could surprise investors and push prices up. Meanwhile, the growth, market capitalization and adoption in the cryptocurrency space will help ensure the survival of the cryptocurrency market even under adverse circumstances.

The recent drop in prices can be attributed to the global spread of COVID-19 (particularly the Omicron variant). These contagious diseases have made people more likely to fall ill and use intensive care units, resulting in insufficient workloads. All of these uncertainties across the globe have impacted the retail and cryptocurrency markets as investors turn to safe-haven assets and refuse to take higher risks.

If Omicron turns out not to be a big deal and the world returns to normal soon, this recession may soon end when investors regain confidence. However, if labor shortages and home-based decisions are repeated, investors will continue to lose faith in the market and prices will continue to fall.

It is not possible to predict what the market will do, but good judgment and research can help prevent low risk. Every cryptocurrency trader should simply invest in their capital at their highest risk and get the exchange rate necessary to make the big profits they want.