At present, Bitcoin is set to print red candles for the ninth consecutive month. Since the start of the current year, the stock and the cryptocurrency market have been experiencing a considerable amount of price crashes and selling pressure. On one end, the relatively new and inexperienced investors are taken over by the FUD; on the other hand, the experienced and long-term investors are not deterred by the condition of the financial markets at all.
In the same manner, the market analysts and financial strategists also claim that bear markets are a healthy part of the investment life cycle. Some experts claim that bear markets are not to be feared but seen as an advantage. The long-term investors and the whales in the market took the bear market period to make more purchases and increase their investment portfolio by buying from the dip.
Polygon Co-founder Claims that the Cryptocurrency Market Depression is a Necessary Evil
At present, it is visible that bears are dominating the cryptocurrency markets. Likewise, the traders who are in the market for the long run claim that such periods scare away the unfit and the hustlers from the market, creating a better and more stable environment for everyone. However, most investors are unable to see anything beyond the inevitable price crash and the loss of money, which is an unavoidable situation at any rate.
One of the cryptocurrency experts who seem to agree with this idea is Polygon network co-founder Mihalio Bjelic. He was recently invited to CNBC for an interview, and he told the journalists that the recent market sell-offs that many investors are ragging about were a much-needed change to refresh and reset the cryptocurrency market.
He further claimed that, at present, the sentiment of the market could be depressive, but it is worth keeping in mind that between 2019 and 2021, the total market cap of the cryptocurrency space was appreciated by 12.5 times.
It is worth noting that bear markets typically last shorter than Bull Runs. Jason Ye, partner at crypto investment firm ROK Capital also shares the same thoughts on the current situation. He recently claimed that while the price and the overall market activity might be reducing for the time being. However, when the trend starts to travel towards a trend reversal, the investors who remain steadfast would be set to reap a higher reward.
Metaverse game developer Alex Becker recently posted an update on his Twitter profile, talking along the same lines. He claimed that most investors tend to turn bitter and resentful during the bear market cycle.
He further explained that most investors tend to ignore the fact that the bear market is the chance to increase acquisitions and a chance to make profits later. He also claimed that people who remain at a loss, for the most part, are the ones who make their purchases during the bullish period.