The bears are having a great time currently as you can see, which is really unfair sometimes because, why does the bear market last more than the bull market? Well the bear party is not my favourite party as I don’t like to take part in that, I love the bull party more, but it is what it is. First of all, why are we in a bear market? This year has been one hell of a year filled with a lot of experiences, this is why we are going to talk about the reason we are in a bear market.

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One of the reasons we are in a bear market is inflation, some people can blame inflation due to good economy while some people can blame inflation due to bad economy,. Good economy in the sense that, if the economy of the nation or country is good, some people might start demanding more pay because they feel there is enough money in the country, the government will in turn increase the price of the cost of living and this will increase inflation. Now people have to pay more to get what they want so they can survive. If the economy is bad that is way worse, because the people don’t even have the option of asking for a raise but things are getting more expensive. This means that more crypto holders will have to sell their crypto assets just so they can survive. This is one of the causes of the bear market.

If you look at the crypto bear market history over the years, so many things have been the cause of the bear market movement aside inflation, something massive usually happens that has a major influence to how the market surges really low, unfortunately 2022 had its fair share of that. The whales sold off for some whale reasons, the LUNA/UST unfortunate event, the hedge fund crash due to LUNA/UST crash, then the CEX collapse, the list goes on and on and on.

Where Are We?

Well a lot has happened in the market, I am no prophet or messiah but from the look of things we are in the complicated place of the market, where anything can happen. We have seen lots of whales who we once thought were strong enough to withstand the bear market sell off their holdings. They got shaken off the market and that is okay, its always advisable to take loss when you don’t feel like being in the bear market or holding. The people that left the market early and bought back the bottom are lucky because a lot of growth has happened in the crypto market within the last few months.

But don’t forget that liquidity runs the market which in terms influence volatility so the supply of fiat into the system will decide how soon we are going to see the bull market or not. Increase in inflation due to to more printing of fiat from the government might also increase the chances of seeing another bull market. Fiat has no limited supply but bitcoin and other cryptocurrencies do, so if that is directed into crypto with the idea of preserving assets and wealth, we are going to be seeing another potential bull market soon.

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