I need to see real growth in metrics like customer acquisition and trading volume before making a deeper commitment. From what I can tell, the news about EDXM will only be positive for Coinbase if it helps to expand the pie for the crypto industry as a whole. That's right -- they think these 10 stocks are even better buys. Independent nature of EDXM would also restrain the firm from the possibility of conflicts of interest. EDXM needed to prove its utility to stay relevant within the crypto space though. For now, I'm taking a wait-and-see backed crypto exchange with Coinbase. Meanwhile, the EDX exchange would work to accommodate both private and institutional investors.
With NFTs possibly gaining more widespread adoption after a successful transition of Ethereum from proof-of-work to the more environmentally friendly proof-of-stake, they certainly provide a different market dynamic than we saw in the last crypto bear market. NFT trading volume surged at various points over the last two years.
For example, a remnant of the initial coin offering bubble, ETHLend, ultimately became industry-leader Aave. As with NFTs, the very existence of a fleshed-out DeFi ecosystem means the dynamics of the wider cryptocurrency market are different than during the last bear market — for better or worse. The total value locked in decentralized finance has absolutely nuked in The decline from bull-market peak to bear-market bottom was a collapse of Comparatively, the current bear market found its to date bottom in only days.
Of course, it still could fall lower and take more time, but the rate and velocity of the decline has been sharper, harsher and with less relief. The last bear market saw a peak-to-bottom decline of Source: TradingView The patterns are also totally different.
In , the price of BTC went parabolic and then crashed into a descending triangle formation — which, ultimately, capitulated to the downside. The current bear market has seen a peak-to-bottom decline of Most notably, the last cryptocurrency bear market preceded COVID and its global macroeconomic consequences — i. There is also an ongoing military conflict in Ukraine, which is currently causing an energy crisis in Europe and a food crisis elsewhere in the world.
Overall, most would agree the geopolitical and global-macroeconomic situations are far from ideal. The gains reversed some ground lost earlier in the week as investors tried to reconcile the latest data showing inflation still on the march and disappointing earnings among major brands in a range of industries with more encouraging signs that the global economy may not be cratering anytime soon.
The University of Michigan's widely watched, monthly consumer sentiment index remained near its all-time low in its most recent release Friday. Yet, the job market and retail spending have remained strong, indicating that the economy is still expanding.
Crypto news remained largely bleak, even without the continued afflictions of crypto lender Celsius Network, which filed for Chapter 11 bankruptcy protection on Wednesday, and crypto hedge fund Three Arrows Capital, which filed for Chapter 15 bankruptcy earlier this month. Among other, more recent developments, Russian President Vladimir Putin signed a law banning digital payments across the nation, according to a policy amendment on Thursday.
At the end of , I was analyzing the reasons for the bear market in cryptocurrency. It is interesting to look back and check if something has changed. Potentially it could let us predict future movement and development. When will the bear market end? Either way, one should keep in mind that investing in cryptocurrencies is a crazy rollercoaster ride of emotions, due to its instability.
Many crypto investors might want to sell their coins now, when the temptation is greatest. However, this is exactly why one should continue hoDling. Don't put in more money than you can afford to lose. If you're trying to figure out where to store your life savings, traditional assets are still your safest bet.
Rate of adoption is hampered by the bad press: news events that scare Bitcoin users include geopolitical events and statements by governments that Bitcoin is likely to be regulated. Bitcoin's perceived value fluctuates. Too much variance in perceptions of Bitcoin's store of value and method of value 4. Little option value to large holders of the currency 5. News about security breaches make investors react 6. Tax treatment of Bitcoin also affects the volatility 7.
Scalability issues: to date, Bitcoin can only process 7 tps, Ethereum can only process 13 tps, meanwhile Visa, Inc. How long will the crypto bear market last? Understandably, many investors have seen their crypto portfolios decimated by this bearish period.
Most investors wonder if this crypto winter is going to last as long as the last crypto winter. Exploring previous market history If we look at the past few years, the crypto market has generally followed a four year cycle. There are patterns that we can use to make estimated guesses based on past performance. This, however, is not negative. Bearish markets are a normal part of investment cycles. You need not be alarmed. Cryptocurrency and blockchain technologies have made incredible progress over the past few years.
The crypto industry is here to stay. If we were to try and forecast the market movements at this very moment, we should expect the remainder of to remain bearish. We could, however, have the opportunity for another bull market in Only time will tell. How to handle a crypto bear market? There are only two reasons why you should ever sell your crypto holdings.
You no longer believe in the fundamentals of a project. Selling during a bear market will likely only further your losses and sever your chances of any potential recovery. Buy the dip While bearish markets can be stressful for investors, they are often viewed as great investment opportunities to buy in at significantly lower prices.
When asset prices are low, this creates more opportunity for investors to profit. After all, if your investment strategy is longer-term, buying during a bear market can pay off when the market cycle reverses.