With no buyers and only sellers, the downwards pressure on Bitcoin is unlike anything we’ve ever seen before. Institutional investors likely won’t pick back up until we’re back far below $10,000.
6. Bitcoin is a speculative bubble, and the hype is drying up.
We all know Bitcoin serves no actual purpose but is solely a tool for speculators to gamble on. While that worked well for the last few years, its hype and attraction to investors are fading quickly.
Bitcoin has already lost over half of its value, central banks around the world are banning it, countries are banning BTC mining due to energy and environmental concerns, retail and institutional investors are rushing to exit, and the majority of the narratives have all failed.
Why You Should Embrace the Bear Market?
Think of what’s happening now as what happened in the 2000s with the dot-com bubble collapse. It’s structurally and fundamentally very similar.
While bag-holding some cryptocurrencies that hold zero intrinsic value may leave you with nothing, this is also a great opportunity for you to accumulate projects at discounted prices.
After the tech bubble popped, companies like Amazon, Apple, Facebook, Google, and PayPal grew into multi-billion dollar mega-companies that have made long-term investors extremely wealthy.
While 99.99% of cryptocurrencies are going to zero, there is still a small portion that will likely grow a lot in the future. Make sure to focus on real utility, and always do your own research.
Bear Market Flushes the Toilet
Right now, the crypto space is littered with thousands of fraudsters and shitcoins. Seriously, there are over 33,000+ crypto projects that exist, and most of them are just created by some sketchy Russian dudes who have plans to exit scam once they’ve lured in enough suckers.
This bear market will halt new inflows into these projects, and give investors the desire for a flight to quality, where projects with real value will rise.
I think that is something we should all be looking forward to!
How To Profit In a Bear Market?
In a bear market, a trader should replace the saying “buy the dip” with “sell the tip”. That rare moment in a bull market when the price dips low to support is seen as a golden opportunity to make money. The same can be said during the occurrences when the price bounces upwards off of a support zone during a bear market.