While the crypto bear market may be frightening to some, it really presents traders with more prospects for development and profit than a bull market does.
Even if crypto markets are clearly in a negative state, some industry insiders feel that current circumstances will shake out the bad players and provide larger chances for future entrants in the field.
Negative price movement and the difficulties of making winning transactions under bearish market circumstances are often lamented by traders. Leading experts and developers, on the other hand, concur that now is the moment to make movements that will result in the highest rewards when positive attitudes return.
Mihailo Bjelic, a co-founder of Polygon, said on CNBC on Friday that the market needs the present slump and the last big sell-off earlier this month.
From November 2019 to November 2021, the overall crypto market value increased by 12.5 times, a phenomenal growth rate that surpassed most other conventional markets: Bjelic feels that the market has become “maybe a little bit irresponsible,” or “a little crazy.” In situations like this, “correction is usually required, and at the end of the day, it’s beneficial.”
At the present, the market is in the midst of a significant downturn. According to CoinGecko, the whole market worth has decreased by 60 percent since last November, from $3 trillion to $1.2 trillion. As of Saturday, a report from Cointelegraph said that traders still anticipate further suffering, given that the previous bear market saw values plummet by nearly 80%.
Bear markets, according to crypto market researcher The DeFi Edge, provide advantages that are consistent with the goals of the majority of market participants. “Bear markets are beneficial for the development of crypto,” the account tweeted to its 164,000 followers on Sunday.
This logic is based on the fact that fraudsters believe that a bear market has fewer new market participants who may be prospective targets. Coincident with its price apex on Nov. 9, Bitcoin (BTC) transaction volume reached a record high of 335,411 on that day last year. According to Blockchain.com, the number of transactions dropped by 38% on Sunday, to only 207,859 total.
There is less chance and less profit in operating scams when there is less activity, thus they tend to go away.