The digital asset manager Grayscale shows in its latest report “Bear Markets in Perspective” that the crypto market, just like the traditional financial markets, has cycles that last almost 4 years or 1,275 days. Grayscale has defined a market cycle by implying that the realized price is moving below the market price. However, the report claims that there are several methods to identify a market cycle.
The current cycle began in 2020 and has passed 1191 days. In about four months, the realized price will rise above the market price again. Accordingly, the downward or sideways movement of the price could continue for another 5-6 months.
Interestingly, the on-chain data shows an increase in outflows from the crypto exchanges. This could mean that investors take the opportunity to increase their positions. The current market cycle shows that, despite price declines, liquidations and volatility, the crypto market
continues to build and innovate.