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What Is a Bear Market?
"A bear market is when a market experiences prolonged price declines. It typically describes a condition in which securities prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment."
"Bear markets are often associated with declines in an overall market or index like the S&P 500, but individual securities or commodities can also be considered to be in a bear market if they experience a decline of 20% or more over a sustained period of time—typically two months or more. Bear markets also may accompany general economic downturns such as a recession. Bear markets may be contrasted with upward-trending bull markets."
It's almost two months since Bitcoin has started its downtrend and according to the above definition we might enter a bear market, soon, if BTC not changes direction. Seems that $42,000 has held pretty strong the past 24 hours and it might be the bottom of further bull market continuation, or not...
Another question that might arise now is: why has Bitcoin felt from the sky the past two days? One cause might be the situation with Kazakhstan where they temporarily banned mining, due to power supply shortages amid cold weather, Kazakhstan having internet down as well in the middle of violent riots and protests over there.
As a personal note, I believe we will have similar situations, regarding rioting, in many other countries in the year to come, but that's just a supposition.
So, what if we enter a bear market?
I personally have stated plenty of times on my blog, the past few months that I don't believe in bear and bull markets anymore, but I'm a noob, I could be completely wrong on that. BUT even if we enter a bear market it sure doesn't look like the 2018 one.
I Don't Remember Any Mayor Having Any Paycheck in Bitcoin Back in 2018
New York has a fresh new mayor as of January 1st, this year, and according to his decision taken a few months ago, he will be paid in Bitcoin for three months in a row... Mayor Suarez of Miami has had his paycheck in Bitcoin as well, that making New York Mayor not the first one to do so.
I bet that more and more political leaders will opt for that in the years to come.
a recent interview the New York Mayor said that "the best time to buy is when things go down" pointing towards the recent dump in Bitcoin's price, right after he was instated as mayor. He might be right, you know ;).
Weather bear market or not, I can't say we can't compare in any way the current times we have in crypto with the years 2018-2019. The whole space back then was nothing more but speculation, while now we can see a bit of certainty regarding the mass adoption process of Bitcoin and blockchain technology in real life.
Take Samsung for example, that joins the metaverse by opening an official store in Decentraland. Samsung is also launching TVs that support NFTs and direct purchases of NFTs. Gradually it all adds up to the process of what we've been waiting for so many years: "mass adoption for crypto
Bottom line, it doesn't feel like a bear market, if you ask me, but if Bitcoin will resemble the course described by the definition of a bear market, I'm fine with that. It will for sure be a fun one, having Ragnarok being launched and all the goodies coming to Hive and Leofinance, thus I'm not gray about it. It will probably be a short lived one also.
Thanks for attention,
Initially Posted Using LeoFinance Beta
