When it comes to Bitcoin, we’re in the midst of a price slump that has caused many to wonder if we’re in a bear market.
The short answer is: it’s hard to say.
Bitcoin is a notoriously volatile asset, and its price swings can be difficult to predict. That said, there are a few key factors that suggest we may be in a bear market.
Firstly, the overall crypto market has been in decline since early 2018. This is evident in both the total market capitalization of all cryptocurrencies, which is down from its all-time high of over $800 billion to around $250 billion currently, and also in Bitcoin’s own price performance.
Bitcoin reached an all-time high of just under $20,000 per coin in December 2017 but has since fallen to around $3,500 at the time of writing. That’s a decline of over 80% from its peak.
Another key factor that suggests we may be in a bear market is the lack of positive news or developments when it comes to Bitcoin and cryptocurrency adoption more broadly.
In 2017, there was a lot of excitement around Bitcoin and crypto as more and more people and businesses began to adopt it. This created a positive feedback loop where rising prices led to more mainstream adoption, which then drove prices even higher.
However, that excitement has largely dissipated in 2018 and 2019 as adoption has stalled somewhat. This lack of positive news flow is one of the key reasons why prices have been falling.
So, based on the current evidence, it does look like we may be in a bear market for Bitcoin. However, it’s important to remember that this is just one interpretation of events and that anything can happen in the world of cryptocurrency.