The crypto market recovered well from a deep bear market earlier in the year, but now Bitcoin price, like many altcoins, has slipped back into bear market territory (until this news broke). A well-known Dutch crypto analyst compares the conditions to a ghost town.
Bitcoin bear market lasts a long time
On the social media platform X (formerly known as Twitter), Michaël van de Poppe explains that the annual price change of Bitcoin (BTC) has now turned negative again. In the past few months wash this The value is still positive for a while, but now the price is tending to fall back below the price of exactly one year ago.
Van de Poppe says he understands why people think the crypto market is a bit like a ghost town. After all, the annual price change was negative until June last year, and this period lasted as much as 490 days. Whether the bear market is already over is hard to say.
The “red” part of the 2015 and 2016 bear market lasted only 386 days, and the negative annual interest rate change in the 2018 and 2019 bear market lasted only 204 days. Then came the corona crash at the beginning of 2020, which led to an annual negative price of just 37 days. The period of 490 days is therefore exceptionally long.
The longest bear market in history for #Bitcoin
It might feel like a ghost town in the crypto space. It might feel like there won’t even be another bull cycle and I understand why these thoughts exist.
But why?
Well, people base their decisions on history. 👇… pic.twitter.com/Ljtv9wmw12
— Michael van de Poppe (@CryptoMichNL) August 27, 2023
The analyst specifically talks about Bitcoin, which has performed relatively well over the past six months. Lots of altcoins and non-fungible tokens (NFTs) have fallen significantly faster and are therefore in the red zone.
Cryptocurrency adoption is here
So the current market would most closely resemble the 2015 bear market. Even then, the price moved sideways for a long time while people lost confidence and patience. Still, there was strong fundamental growth back then. More and more parties are entering the crypto world.
Van de Poppe emphasizes that this is no different now. For example, giant asset manager BlackRock owns stakes in bitcoin miners, and the same goes for Valkyrie. There have already been several requests for Bitcoin and Ethereum ETFs, and a spot ETF for Bitcoin is already trading in Europe.
Also, Hong Kong policymakers are now allowing crypto companies, and Oman has decided to invest more than $1 billion in Bitcoin. The acceptance of crypto is there, only the price is still difficult.