Analysts believe that the bear market in crypto shouldn’t be considered a threat as it can provide more chances for growth and profit over a bull market which is why traders should take note.
The market for crypto is clearly negative, however certain industry experts believe that these trends will remove the bad actors and provide more opportunities for the future investors.
The traders are often unhappy about the negative price movement and the difficulty of executing profitable trades under negative market conditions. However, a number of leading analysts and builders are of the opinion that now is the right moment to take actions which will result in the most profitable gains once the bullish mood returns.
Polygon Co-founder Mihailo Bjelic told CNBC on Friday that the market’s current decline and the major sell-off that occurred in the last month were what the market needed.
Bjelic says that market was “maybe a little bit irrational, or maybe a little reckless,” in the sense that the market cap for crypto increased in 12.5 percent between the months of November and November. which is a phenomenal increase that was more than traditional markets:
“When the times like that come, [a] correction is normally needed, and at the end of the day [is] healthy.”
Markets are in middle of a massive correction right now. Since November of last year the market’s total cap has fallen by 60 percent from $3 trillion to $1.2 trillion as per CoinGecko. Cointelegraph announced on Saturday that traders anticipate more losses, particularly given that the previous bear market that saw prices drop by about 88% in all.
Analysts in the crypto market The DeFi Edge added context to the notion that bear markets have advantages that are in line with the interests of the majority of market players. The account tweeted its followers of 164,000 on Sunday, saying that “bear markets are healthy for the growth of crypto.”
This argument stems from the fact that fewer market participants, who fraudsters see as victims, join during bear. In the last few years, Bitcoin (BTC) the volume of transactions reached its highest on November. 9 with 335,411, which coincided to the price peak. On Sunday, the volume of transactions dropped by 38% to 207,859 as per Blockchain.com.
Low activity means less chance and lower profits to operate scams in the first place So they are more likely to fade away.
The bear markets are good for the development of Crypto.
The deadweight is eliminated and Crypto could reach new heights. pic.twitter.com/5wKEzHxy6B
– — The DeFi Edge (@thedefiedge) May 28 2022
Jason Ye, partner at ROK Capital, a crypto investment fund ROK Capital, explained that although activity and prices are down but bear markets are the best moments for builders and traders to establish the basis for greater profits in the event that market sentiments turn negative. He explained to Cointelegraph this morning the following “In a bear market, it is time to find the best fundamentals and focus on building a product:”
“It’s the right time for traders to make use of their cash reserves to gain a profit in the coming bull cycle. Like always, the winners of this bull market will be investors who made the most of that bear market.”
Game Maker on Metaverse Game Maker at Metaverse is a game-based platform Neo Tokyo Alex Becker echoed Ye’s opinion in a tweet posted on Saturda. He believes that those who buy bear market stocks are who are in the best position to make a profit in any bull market. He stated that “all the profits are made by buying into an bear market. The majority of losses are incurred when buying in the bull market.”
Becker said that purchasing low, and then selling at a high price should be the primary factor that drives the crypto market, it is not the only factor. In addition, he said that those who are on Twitter are among the most irritable in a bear market which he described as “ironic.”
The funniest I’ve realized about crypto twitter is everyone gets toxic and bitter as fuck in a bear market.
Which is ironic because all the money is made Buying in a bear market.
Most losses come from buying in a bull market.
Shows how ass backwards this place is…
— Alex Becker (@ZssBecker) May 27, 2022