When will the bear market end — From a non-investor’s perspective

The crypto market is notorious for being volatile. But a week ago it took a severe nosedive with the flagship tokens losing by 10%. Here’s when it will end.

Some suggest just a couple weeks, some suggest eight months, and even some speculations that the current crypto bear market could last even two years. Analysts from all over the world are trying to put a date to the end of crypto winter. But how it’s from a non-investor’s perspective? Will the crypto bear market end? When? Read on to know.

Key Takeaways

• Cryptocurrencies, even the flagship ones, have suffered a severe nosedive this year, losing $2 trillion value.
• The events of past meltdowns and this one has a lot in common, but the market isn’t what it used to be.
• The recent downfall of the algorithmic stable coin Terra highlighted how interconnected projects where.

Over the past three months, the flagship crypto Bitcoin has dropped from a high of $48,000 to roughly $21,000. This concern has also been spread with rising inflation and speculations of a coming recession. The majority of investors have already come to a conclusion that we are in for another extended, and loss-making period of crypto prices.

“The next two years in crypto are going to be really rough,”

Says Avichal Garg, a managing partner at Electrical Capital, an investment fund with more than $1 billion in assets.

“New software developers are coming in, and we are seeing more high-quality founders. We see Web2 executives from Apple, Facebook, and Google coming in at a faster clip,”

He says. But one big factor has backers particularly nervous

“It’s the first time that crypto and Web3 has existed in a macroeconomic bear-market environment, where there’s potentially a recession that is about to happen next year,”

Mr Avichal Garg further adds.

It’s understandable that crypto investors who have seen their portfolio take a dive want to know when will the bear market end. The trouble is that nobody in the DeFi industry have a crystal ball and we aren’t certain about which factors are bringing down the price of crypto. “Bear” in mind that (no pun intended) that the world is dealing with the aftermath of the global pandemic. While there are past patterns that we can analyse to make an educated guess on when the current crypto bear market will end, much of what’s happening today, is completely unprecedented.

Putting My Speculation To The End Of This Bear Market

Instead of focusing on the “when” of the end, perhaps its more constructive to explore the “why” and “what” of the end. What events might help the market escape the claws of a bear and put it on a path to its next up cycle. Here’s a breakdown of the three potential catalysts that could pull the cryptocurrency market out of its current malaise:

1.One successful Ethereum merge

One of the most, if not the most highly anticipated development over half a decade has been the ongoing transition of the Ethereum network from a PoW to a PoS concept. While this process has been a drawn-out one with a number of setbacks over the past few years, the official switch is now much closer to a successful completion after the trial.

2.The Federation reverses the course

Following a decade of easy money policies and near-zero interest rates, the US Federal Reserve has approved an interest rate hike of 0.25%, the first hike in more than three years. This noteworthy rise in the market was largely driven by the easy money policies, and it’s very likely that a return to such policies would once again hike the prices.

3.Adoption of crypto as a payment mode

Savvy investors and analysts aside, a large portion of low adoption of crypto is due to the lack of use cases among commoners. Tokens like Bitcoin are still not considered as a valid payment option even for the savviest of the tech-oriented brands. While on several occasions, influencers have boosted the value, the effort needs to be consistent.

Non-Financial Advice: The data, resources, and statistics in this article have been consolidated from multiple sources and neither the author nor the site is responsible for any financial profit/loss incurred from the data and opinions present in this article. Readers understand that all risks associated with cryptocurrency are taken on by themselves.