The Bear Market
A 7-Year love affair with Crypto.
1. THE DROP:
– Initial drop across all assets big and small.
– Most Traders/Hodlers think it’s a small blip and try continue as normal.
– Prices continue to tumble and Traders realise things are worse than expected.
– Traders / Hodlers start panicking and dump their assets, starting with the lower MCaps.
– As the initial drop starts to stabilise, traders begin DCA in large assets (Bitcoin, ETH, BNB, etc.)
– In order to DCA into the larger assets, traders will often sell off their smaller assets (Low utility tokens like GameFi, Insurance, DAO Governance).
– Traders start to see small gains over short periods and money starts to flood back in from stablecoins and FIAT, starting with the larger MCaps (Bitcoin, ETH, BNB, etc.)
– As confidence grows that the bear seems to be over, money starts to flood into smaller asset coins with the best product (GameFi, Insurance, etc)
7. STEADY GROWTH:
– Trading volume continues to increase and candles are green.
– Large assets grow steadily, hyped smaller assets grow exponentially.
What happens next differs on each cycle but I’ll revisit that in another post.
Not financial advice. Just like sharing my own views on the market