LESSONS FROM THE BEAR MARKET AND THE PUBLIC REACTIONS
Many crypto lovers dread the emergence of a bear market. Nobody wants to see their investment go at the speed of light. A persistent bear run in the crypto market serves as an awakening and an opportunity for many market participants, especially the traders and investors, to discover more things about the crypto space and to learn multiple lessons. It helps them identify important factors in the market and how they can affect the market at large.
“A project with a strong and good use case will always survive the bear market and recover from the loss in the bull run.”
One of the numerous lessons learned in a bear market is the importance of holding onto one’s investment. An investor/trader will only lose money if they panic sell when the market is down. A project with a strong and good use case will always survive the bear market and recover from the loss in the bull run. These lessons also help participants identify the importance of fundamental analysis when choosing their cryptocurrency.
In addition, the bear market helps the crypto community to understand, beyond the technical and fundamental analysis, other factors to consider when making decisions in this market. They are macroeconomic factors like economic downturn, inflation, government spending, bursting market bubbles, global financial crises, etc. The importance and impact on the crypto market by these economic factors cannot be over-emphasized.
The public’s reaction to the bear market varies for everyone. For some, it builds the hunger to learn more and prepare for future events. For others, it is a very depressing period, especially when they have lost a significant amount of investment. Ultimately, they withdraw from investing and see crypto as a scam.
Risk management is important to avoid losing more than the amount you can let go. The crypto space is a promising market with lots of opportunities for those who are patient and committed tom knowledge building. With efficient information, you will be able to pull through the hurdles of the bear market.