Current Bitcoin market feels like going to war. It looks like crypto has reached such a low a level of popularity. May be, it can finally return to its rightful place solving problems, without the permission of the incumbents. However, the best Comradery is formed during times of war. Best friendships are also formed during this time.
The idea of pro-longed crypto winter is already prevalent among Bitcoin investors. Navigating the crypto winter has become a challenge for short-term investors. Several cryptocurrency related companies are facing serious issues. They are not able to sustain their financial promises. Many of them are heading towards bankruptcy.
Bear Market Vs. Crypto Winter
The average length of a bear market is 388 days. When excluding the longest and shortest bear markets, the average length is around 330 days, which means it is just under one year. The crypto winter began in June 2021. The expectation is for the trend to last for another 4 years. This means the cryptocurrency market will not recover until 2026. So, it looks like it is crypto winter.
Bear Markets were supposed to be for buying and adjusting. The well-known stuff about Bitcoin and crypto is that the market trends go in cycles. While we are already in a bad year, global events made the cryptocurrency market situation worse.
Those who did not invest their discretionary money are hoping. They are hoping that the brotherhood will get them through the struggle. They are many who are technically not able to afford their rent payments, many are getting divorced for listening to the promises of big returns and moon high profits in investment. Several youngsters have already had a hard lesson in the cryptocurrency market.
Cascading Failure in Bitcoin Space
Old school investors are convinced that the cryptocurrency economy will shortly experience a systemic risk. The risk of an entire investment system breaking down as opposed to the failure of just a few cryptocurrencies and exchanges is probably too scary.
Risk of cascading failure in the financial sector, caused by linkages within the financial system, resulting in a severe economic downturn is not an easy thing to handle for short-term investors who deal with margin calls.
But if you look at this period as an opportunity for growth and learning, then you’ll find that these periods are actually – some of the best times to get closer to your fellow investors and traders. However, surviving the crash needs some resilience. Several investors are looking to move away from riskier assets.
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