Blockchain is the robust and reliable structure behind every cryptocurrency. It is a ledger that keeps secured and verifiable records of every transaction done in crypto within a network of the system. With blockchain technology, people do not have to go through the process of trusting their partners or even having a middleman. The system already has infallible security that is decentralized and guides against threats. In the cryptocurrency market, staying updated with blockchain research and digital currency prices is crucial. That’s what determines a bear or bull market.Â
Is The Bear Market Approaching?
The cryptocurrency business is highly hinged on buying and selling, trading as it is called. So, traders buy to sell. But the market type affects this trading. Notably, as one of the crypto assets, Bitcoin BTC is the largest market and a determinant of investors’ plight. During the bull market, the circulation of Bitcoin BTC supply undergoes unrealized profits. It is a sustained period where the market prices continue to increase beyond the usual price, making the investors recover gains.
On the contrary, a bear market is a prolonged period of constant price fall. Investors make losses that could be unrealized. Stocks, bonds, crypto, and even real estate can go through either period. Simply put, a bear market is a rough season for investors.
Over the years, there have been groundbreaking bear markets in crypto. From 2018 to 2020, the crypto market faced a brutal bear season, losing over $640 million. This loss happened after Bitcoin reached a high peak in December 2017, from $1,000 to $20,000 in twelve months, then it began to decline in 2018 till it reached $3,200 in December, losing 80% value.
From late 2020 to 2021, Bitcoin BTC had a new phase of a massive bull market. This lasted till 2023. However, it is accounted that in April 2021, Bitcoin rose like never before to $64,000 and then faced a crash for six months. Yet, it returned in a comeback bull market. After that, it experienced falls but mostly rises. As the saying goes, nothing lasts forever, especially regarding Bitcoin BTC. This dynamics of rise and fall is not peculiar to Bitcoin alone. Real estate, stocks, and bonds get involved. They also affect themselves because the rise in one could be the rise in the other. With such history, what is the fate of the market now? Is a bear market approaching? Is history going to repeat itself?
According to the predictions made for 2024, it is said to be a year of recovery for the crypto market. This change can be attributed to several critical factors like technological advancement, strategic investment decisions, stock markets, etc. 2024 has been projected to mark a hopeful transition from bear to fully bullish. There have been estimates that by 2025, Bitcoin would rise to $150,000 or even more. But as said earlier, there are factors determining this movement. If the demand remains and the supply is cut in half, the prices will rise.
Interestingly, the crypto market is now bullish and experiencing the first phase of the halving cycle. There has been a recent rise in Bitcoin demand due to the launch of its exchange-traded fund, shooting the price from $46,106 to $62,500 in less than two months. The market will remain highly profitable if all things are equal. However, new investors are advised to avoid taking leverage decisions as the market could switch up at any point. Then, to long-term investors, the market is green enough to accumulate assets for the next halving cycle in four years.
Conclusion
The crypto market is very dynamic. Investors who have been in the business for a long time know this and make decisions based on this knowledge. Making hasty decisions can be risky, so studying the market before deciding is best.
