When will the bear market in crypto end? Crypto Investor's Weekly 15/08-21/08
Olga Feldmeier
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Do you know what signs to look for that could signal the end of this bear market in crypto?
After several weeks of a thawing market this past week has seen things cool off again. That said, overall market prices remain higher on a week-to-week basis, but daily price moves haven’t been promising. Which begs the question - how will we know when the bear market in crypto is finally over?
It’s a question that’s been asked about every market suffering from price declines throughout history. Unfortunately there’s no set answer, no guaranteed indicator that highlights the bottom of a bear market. However there are some signs we can look for, one of which is higher highs and higher lows, which we have seen from major cryptocurrencies over the past several weeks.
The Crypto Fear & Greed Index might also give us a clue. After reaching its second lowest reading ever of 6 this past June the index has been showing a recovery. Currently sitting at 30 investors are still fearful, but not nearly so much as they have been. Extreme fear can be a sign that investors are too worried. That could be a buying opportunity. And it does seem to have played out that way as markets have been rising alongside the rise in this Fear & Greed Index.
We’ve found that the best way to invest in Bitcoin and other cryptocurrencies is to make regular purchases of the tokens that represent the strongest opportunities within the blockchain ecosystem. This approach means you’ll buy more tokens when prices are low, and less when they are high, ultimately giving you the best returns and the least stress over market fluctuations.
A survivalist’s guide to the bear market
Anyone can make the most of the markets when prices are high and every project is going through the roof. But bear markets are what separate the wheat from the chaff. Experiencing your first crypto winter isn’t for the faint hearted. That’s why you need to dig in, prepare for the worst and check out our survival guide to get you through those frosty nights.
Image via alternative.me
Fear and greed are two of the main driving factors in market movements, which is why this chart is so interesting in helping determine the sentiment within the crypto market. Since hitting its second lowest reading ever, a 6 in mid-June, fear has been slowly receding, reaching 41 last week, but then dipping again to 30 as investors worried over the continuing inflationary pressures and central bank actions, not to mention ongoing discussions over crypto regulation and the troubles in the crypto lending space.?
However, as fear has been receding, markets have also been clawing their way higher. Note that readings under 50 indicate investors may be too worried, presenting a buying opportunity, while readings over 50 show investors becoming more greedy, and could signal a coming correction.
Markets Weekly Range (through Aug. 18, 2022)
Bitcoin - Min (USD): $23’243 / Max (USD): $25’136
Ethereum - Min (USD): $1’824 / Max (USD): $2’023
VALOR - Min (USD): $0.3722 / Max (USD): $0.6356
PAX Gold - Min (USD): $1’755 / Max (USD): $1’799
Summary of Markets Weekly Range:?
Prices for major cryptocurrencies have continued to move higher, with ranges remaining fairly tight. We’re not seeing the volatility that crypto is known for in recent price action, which should be helpful long-term as lower volatility could make these assets more attractive to a broader cross-section of investors. It is worth noting that prices have come off the range highs and are hovering near the bottom of their ranges after sliding lower all week, giving us a troubling picture heading into this weekend.
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Image via Twitter
Here’s a chart showing all the investments into the blockchain ecosystem by traditional finance and tech companies. It’s a telling picture, showing these companies mostly interested in projects providing blockchain services, infrastructure platforms, blockchain development, dApps, smart contracts, and custody solutions. Public companies have invested $6 billion in the blockchain industry. The list of investors includes giants like Google, Samsung, BlackRock, Morgan Stanley. Google’s parent company, Alphabet, invested $1.5 billion in four blockchain companies. Smaller investors might want to look deeper into where these large investments are being made in an effort to understand where they can put their money to work within the sector.
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