Cryptocurrencies are undeniably bearish, but some industry insiders believe these conditions will shake out the bad players and create more opportunities for participants in the future.
Traders tend to lament the negative price action and the relative difficulty of conducting profitable trades in favorable market conditions. However, some leading analysts and builders agree that it is time to take action that will lead to the most profit when the bullish attitude returns.
Mihailo Bjelic, founder of Polygon (MATIC), told CNBC on May 27 that the current downturn and recent major sales earlier this month were exactly what the market needed.
Bjelic believes that the market has become “perhaps a little irrational, or maybe a little careless,” as the total market value of cryptocurrencies increased by 12.5 times between November 2019 and November 2021, an enormous growth that surpassed most other traditional markets.
“When times like this come, [a] corrections are usually needed and at the end of the day [is] healthy. ”
The market is in the midst of a major correction at the moment. Since last November, the total market value has fallen by 60% from USD 3 trillion to USD 1.2 trillion, according to CoinGecko. The Cointelegraph reported on May 28 that traders are expecting more pain, especially given that the last bear market reduced prices by 80% overall.
The DeFi Edge, an expert in the cryptocurrency market, added context to the idea that bear markets have benefits that remain in line with the interests of most market participants. The bill tweeted to its 164,000 followers on May 29 that “bear markets are healthy for cryptocurrency growth.
This argument is based on the observation that fewer new market participants, whom fraudsters regard as potential targets, enter during a bear run. Last year, the Bitcoin (BTC) trading volume peaked on November 9 at 335,411, in line with the peak in prices. On May 29, trading volume fell 38% to just 207,859, according to Blockchain.com.
Less business means less opportunity and less profitability to run many scams, so they tend to disappear.
Bear markets are healthy for the growth of Crypto.
The deadweight will be removed and Crypto can soar to new heights. image.twitter.com/5wKEzHxy6B
– The DeFi Edge ️ (@thedefiedge) 28 May 2022
Jason Ye, a member of ROK Capital’s cryptocurrency investment fund, explained that while prices and activity are lower, bear markets are great times for traders and builders to lay the groundwork for more success when market sentiment reverses. He told the Cointelegraph on Monday that “In the bear market, it’s time to find the best fundamentals and focus on building a product.
“It’s time for traders to use their cash reserves to reap the benefits of the next bull run. As always, the winners in the beef market are the people who built on the bear market. “
Metaverse Neo Tokyo’s game maker Alex Becker echoed Ye’s idea quack on May 28th. He also believes that bear market buyers are the ones who are in the best position to profit from the next bull. He said that “all the money is available to buy at the bear market. The biggest loss comes from buying on the beef market. “
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Becker added that while buying low and selling high should be the key factor driving the cryptocurrency market, he suggested that people on Twitter were the most dissatisfied in the bear market, which he called “ironic.
The funniest thing I have realized with crypto twitter is that everyone gets poisonous and bitter like hell in a bear market.
Which is ironic, because all the money has been bought at the bear market.
The biggest loss comes from buying on the beef market.
Shows what this site is behind.
– Alex Becker (@ZssBecker) May 27, 2022
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