What can you do in the Bitcoin bear market? – The ultimate guide
The Bitcoin Bear Market Has Been Here For Months! After most analysts in November 2021 were still betting on year-end gains of $100,000, the Bitcoin price began to fall rapidly. But what to do in the Bitcoin bear market? In this article, you will learn what you can do to survive the possibly long Bitcoin bear market and even make money. After reading our guide, you will feel more relaxed in the coming weeks and can be in perfect shape for the next bull market. Let’s take a look at it in more detail.
What is a Bitcoin Bear Market?
A bear market represents a period in the money markets when prices show a downward trend over a long period of time. Investors have little faith in the market and tend to sell rather than buy a certain financial asset. Basically, the bear market is illustrated by a pessimistic attitude of investors towards the market and falling prices.
The bull and bear symbols have been commonly used to define movements in the financial markets for decades. Bitcoin is not spared from these consequences. Historically, Bitcoin’s price has been pushed by bull markets and bear markets. The entire cryptocurrency market observed the development of the Bitcoin price again and again. Other altcoins such as Ethereum, Cardano, XRP or Solana also fall when the Bitcoin price falls.
How long does a bear market last?
Not every price drop over a certain period of time is a Bitcoin bear market. Large corrections can occur in a bull market. This was, for example, the case in the spring of 2021, when the Bitcoin price fell sharply after months of huge price increases, but after a few months price increases and record highs were recorded again.
Bitcoin BTC/USD price history until September 5, 2022: Source: Statista
However, if the downward trend in the Bitcoin price continues for several months and there is no significant upward movement for several weeks, it can be said that the Bitcoin bear market is underway. So far, Bitcoin’s previous bear markets have been illustrated by a fall of around 80% in Bitcoin’s price from its all-time high. This was the case in the big bear markets of 2014 and 2018.
In the past, we have witnessed many Bitcoin cycles that have featured bull and bear markets. These were always founded on Bitcoin Halvings. In this, bitcoin mining rewards are halved. So far, the markets have been established on a 4-year cycle. The previous major bear markets started in 2014 and 2018. At the turn of the last year, the Bitcoin price reached all-time highs.
What to do in a bear market to avoid losing money?
In a Bitcoin bear market, not only the prices of Bitcoin but also the prices of almost all other cryptocurrencies fall. This means that your entire portfolio is very likely to be a loss. You have to accept this fact in a bear market.
You should consider the following factors in this context:
- The number of your cryptocurrencies, including bitcoin, remains constant. They only weaken compared to FIAT currencies like the Euro. Nevertheless, this value can increase again.
- A renewed bull market is almost guaranteed in the future. Bitcoin in particular is deflationary in its structure. Bitcoin halvings increase the difficulty of producing bitcoins exponentially in the future.
- In the long term, cryptocurrencies are worth more in a bear market than they have been in a previous bear market, but are likely to be worth less than in the next bear market.
However, it is likely that the value will rise in the next bull market and that you will consequently make money with your stored cryptocurrencies. So follow the rule:
“Never sell your stored Bitcoins in a Bitcoin bear market if you want to invest for the long term!
Furthermore, a Bitcoin bear market is always an incredible opportunity to buy more Bitcoin and other cryptocurrencies to make money in the future.
What rules should you follow?
- No emotional shortcuts: Try to stay rational in a Bitcoin Bear Market! Don’t let price drops make you panic and you’ll have to wait a little longer! Patience is the key.
- Be greedy when others are afraid: If the majority are doubting the market and selling their bitcoins, consider buying bitcoin at a low price to make long-term profits!
- Preparing for the next bull market: The Bitcoin bear market is a wonderful opportunity to deal with issues such as Bitcoin wallets, price analysis and new projects. Educate yourself on these topics to make better judgments in the next bull market!
Alternatively, how can you make money in the Bitcoin bear market?
In the Bitcoin bear market, it is quite difficult to make money in the short and medium term with rising prices. As such, you need other strategies to make money in the bear market. This includes:
- Trade in Bitcoin financial products such as ETFs or futures
- Betting on other cryptocurrencies
- Bitcoin or Ethereum mining
- Investment in new projects that can also grow in the bear market etc.
Try to find new options to make money even in the bear market. A bear market can last for months or even years, and you have to adapt to the changing events.
Should You Buy During a Bear Market?
If you want to earn long-term returns with Bitcoin, an investment in Bitcoin or other altcoins in the bear market is extremely profitable. A revived bull market in the future is almost inevitable. Just think long term and don’t let short term losses worry you!
Now is your chance to invest in cheap bitcoin. Just go to the Binance and Bitfinex exchanges !
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