August 2012
April 2013
Late 2013-2014
2014-2015
2013-2017
In a highly speculative, low liquidity market with a high % of retail traders dramatic price swings are bound to happen. And in most cases sharp moves over the course of a few days - 1 week can be tracked to 1 source, whether a hack of an exchange or intervention from a central bank.
The prolonged bear markets are more indicative of the crypto market. They happen after a sharp move higher, where the majority miss out, and the smart money makes all the profit. And as with any market, whether forex, the stock market or the crypto market, retail traders get in too late and buy at the top. But in crypto, you get punished harder and faster than any other. The peaks and subsequent reversals are fast and sharp, leaving late investors in despair and quickly selling whatever they held at a loss and leaving the market forever or worse making the same mistakes again and catching the run too late.
Experienced traders/investors who believe bitcoin will replace/join Gold as a digital store of value and those who truly believe in real world adoption are used to these cycles of fear and greed and only see bear markets/dips in price as accumulation phases.
In a highly speculative, low liquidity market with a high % of retail traders dramatic price swings are bound to happen. And in most cases sharp moves over the course of a few days - 1 week can be tracked to 1 source, whether a hack of an exchange or intervention from a central bank.
The prolonged bear markets are more indicative of the crypto market. They happen after a sharp move higher, where the majority miss out, and the smart money makes all the profit. And as with any market, whether forex, the stock market or the crypto market, retail traders get in too late and buy at the top. But in crypto, you get punished harder and faster than any other. The peaks and subsequent reversals are fast and sharp, leaving late investors in despair and quickly selling whatever they held at a loss and leaving the market forever or worse making the same mistakes again and catching the run too late.
Experienced traders/investors who believe bitcoin will replace/join Gold as a digital store of value and those who truly believe in real world adoption are used to these cycles of fear and greed and only see bear markets/dips in price as accumulation phases.