The cryptocurrency market is incredibly volatile, showing everyday price fluctuations. Those price changes allow traders to earn money daily and in the long run. Central banks or governments do not control prices on crypto assets. They move up and down depending on the following:
- The market trend
- Investors’ sentiment
- News background
- Events in the crypto industry and the global economy
- And other factors.
So the price of cryptocurrency today is always different from what it was one day ago.
In spring 2022, the crypto market lived through a collapse when following the leading crypto Bitcoin, the entire market crashed. That was the beginning of the bear trend in the market. And many experts believe that buying cryptocurrency in such a downtrend is a good idea. Let’s see what the bear market is and what waits for the crypto industry next.
What is the Bear Market?
This is the name for the market trend characterized by an overall decline in crypto prices. It also has the name “crypto winter” when digital assets lose value and the panic mood increases, dropping the demand for crypto coins and, thus, their rates.
During the bear market, many young and not established crypto projects do not stand the pressure and the difficulty and close. So, the bear trend is a time when weak projects disappear, and only those surviving keep their positions in the industry. So looking at projects that continue to exist and develop even amid the downtrend, it is easy to comprehend who deserves attention and has potential.
The bear trend always starts with the ruined balance between supply and demand. Investors feel it very well and begin to sell their crypto assets, causing the snowball effect, bringing a collapse.
As of November 2022, the market is stable after the spring collapse. We should remember that market trends change, and it is quite possible that in 2023 we will witness a new upward trend – a bull market, and cryptocurrency live prices will skyrocket. That will be when most people will experience FOMO syndrome, blaming themselves for not buying crypto assets at their downtrend. It makes us think about buying cryptocurrency now as their rates are low and waiting until the upward trend starts.
Take a chance to invest in digital assets. For that purpose, you can use the WhiteBIT crypto exchange.
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