Bitcoin has been in a bear market since the end of last year. Since November, the prices of cryptocurrencies and thus of Bitcoin have fallen massively. The crash continued until mid-2022. The price stabilized again, but the bear market persists. Where should the Bitcoin bear market last for a long time?
What is a bear market?
The term “bear market” describes a market situation on financial markets in which the prices of the assets to be acquired are falling for the most part. It is a market in which investors sell their assets to a large extent, the mood in the market is characterized by fear and the values of the assets and thus the prices fall sharply.
In classical financial markets, we are already talking about a bear market with losses of 15-20% in the markets. With Bitcoin and the crypto market, this decision is a little more difficult to make, since cryptocurrencies, unlike other financial assets, are much more volatile.
What makes a Bitcoin Bear Market?
A bear market of Bitcoin or cryptocurrencies in general is difficult to determine with clear values. In general, we are talking about a Bitcoin bear market on the crypto market when the Bitcoin price drops significantly and over a long-term period. Since the end of 2021, this has clearly been the case for the Bitcoin price.
As in previous bear markets, the prices of cryptocurrencies such as Bitcoin fell by about 70-90% from the previously reached all-time high. In order to exclude an intermediate low, the classification of price movements of the Bitcoin price usually takes longer. The continuous rise in prices over several months makes it easy to assign the name bear market to the price development.
How did older Bitcoin bear markets go?
In recent years, we have seen a clear cycle of the Bitcoin exchange rate over several years. This cycle continued again and again for 4 years. We saw massive losses from the previous all-time high in the first few months, a stabilization of the low price over the coming months, an onset of the bull market and a massive bullrun about 4 years after the last all-time high.
This Bitcoin cycle is based on the Bitcoin Halving events. With a Bitcoin halving, the rewards for Bitcoin mining are halved in each case. After a halving event, we have seen the bull market start again and again in the past and a massive bullrun 1.5 years later.
How long does a Bitcoin Bear Market last?
The Bitcoin bear market lasted about 2-2.5 years in the past cycles. After the months of the massive price drop, we saw a longer stabilization of the Bitcoin price over several more months. Unfortunately, this period lasts a longer time. During this period, we repeatedly see slight up and down movements of the Bitcoin price without massive price gains or losses.
Only at the time of the upcoming Bitcoin halving does the direction of the Bitcoin price seem to change. In recent years, the bull market has started slowly again after the respective halving. After about 1.5 years after the Bitcoin halving, the Bitcoin price then reaches a new all-time high after massive price gains over the previous months.
Is it worth investing in the Bitcoin now?
The Bitcoin price has seen a massive price drop in recent months. As a result, many investors are currently unsure about a possible investment. At the moment, however, the Bitcoin price is very low, which means a favorable entry point. The Bitcoin is so cheap at the moment that it is very well worth getting started.
According to the findings of the past Bitcoin cycles, the next bull market is still some time away. But in the long term, it is worthwhile to accumulate Bitcoin in the bear market and generate massive profits in the next bull market.