Grayscale Investment has recently released report, ‘Bear Market in Perspective’, which looks at the current bear market – since June 2022 – and considers previous trends and cycles in the market.
According to Grayscale data, the bear market can now last another eight months (250 days) if the previous market direction is followed. Using historical trends, Grayscale shows that the cryptocurrency market tends to work on cyclical trends. As with Bitcoin halving, which occurs around every four years, the Bitcoin market cycles around four years – or around 1,275 days. According to Grayscale, cycles are defined by motion Bitcoin’s the price is realized below the market price. Grayscale determines the realized price as “the sum of all assets by the purchase price or market capitalization realized, divided by the market capitalization of the assets which provides a measure of the amount of positions available in or out of profit.
Source: Grayscale
Using the Grayscale indicator, Bitcoin entered a bear run in mid -June. While a bear run makes these assets a cleaner investment, the investment company suggests in a report that a bear run could be a prime time to buy Bitcoin. “Buy dip” and sell high are common trading strategies, but when there is a winter or a long bear run, there is often hesitation from investors to buy the asset.
Grayscale’s original picture of the history of the Bitcoin cycle will determine the current bear market from July to another 250 days if the previous cycle repeats.
Bitcoin cycles through the years
First flash crash: Fall of Mt Gox
Looking at the 2012-2015 market cycle, we saw the first major bear market after hacking the only important cryptocurrency exchange at the time of Mt Gox. During that time, Bitcoin saw a flash sale, dropping 99% of its value within 24 hours. After this bear market, Ethereum was launched and the market saw the entry of new platforms and exchanges with increased security measures to protect ourselves – and investors – from hackers.
Initial coin supply (ICO) boom
From 2016 to 2019, the second cycle of Bitcoin’s life, there was an initial wave of adoption from other investors from the tech industry or early adopters. With the launch of Ethereum, many projects emerged that sparked the ICO boom in 2018. Bitcoin suffered a major crash, which critics called a bursting bubble, after being given an all -time high price tag.
