When it comes to Bitcoin, there is a lot of debate as to whether or not it is currently in a bear market. While some believe that it is still early days and the market has yet to bottom out, others believe that the current prices are already at rock bottom. So, what is the truth? Is Bitcoin in a bear market?
To answer this question, we must first understand what a bear market is. A bear market is typically defined as a period of time in which the prices of securities are falling and widespread pessimism about the future prevails.
When it comes to Bitcoin, there is no denying that prices have been on a steady decline since reaching an all-time high in December of 2017. In fact, 2018 was largely considered to be a bear market for Bitcoin, with prices falling by over 70%.
However, just because prices have been declining does not necessarily mean that we are in a bear market. After all, the price of any asset can go up or down at any given time and there will always be periods of decline. The key difference between a normal price decline and a bear market is the extent and duration of the decline.
For example, if prices were to fall by 20% over the course of a few weeks, this would not be considered a bear market. However, if prices were to fall by 50% or more over the course of several months, this would be considered a bear market.
So, based on this definition, is Bitcoin currently in a bear market? While prices have certainly fallen significantly from their all-time high, it is important to remember that we are still less than two years into Bitcoin’s existence. In other words, it is still early days and the price could very well rebound in the future.
As such, it is premature to say definitively whether or not we are currently in a bear market. Only time will tell.