We are not in a Bear Market: Here’s Why

I think many people are confusing this most recent downtrend with a bear market, but they couldn’t be further from the truth and even worse, could miss out on some big gains:

1) We have to realize that crypto has gotten big. It has caught the attention of institutions now, which means it will be TREATED LIKE AN ASSET ON THE BALANCE SHEET OF BIG INSTITUTIONS. I think we can all agree that crypto is considered a high risk asset class compared to other asset classes. During times of fear or uncertainty (“risk off environments”), institutions will rebalance their portfolios where they will sell off risky assets (crypto, tech stocks, growth stocks) and move towards more conservative investments like value stocks. Can we see evidence of this? Of course. The same sell off we’re seeing in crypto over the last month or two is the same we’re seeing in tech/growth stocks like Tesla, Netflix, etc

2) Why is there all this fear and uncertainty in the markets? Multiple reasons: fears over monetary tightening, rising interest rates, evergrande fallout, potential delisting of Chinese equities from US exchanges, etc

3) Bitcoin crashes and Altcoins COLLAPSE during bear markets. When I say collapse, think of a balloon totally deflating into a thin piece of rubber. Bear markets look totally different than what we’re seeing. Projects like ADA and Algorand still being >$1, ETH still above $3,500, MATIC >$2, and so on show us that altcoins have not even come close to collapsing. Go back and look at what prices of these coins were like in the 2019 bear market.

4) Sentiment will be absolutely devastated in a bear market. Posts in this sub will hardly get any attention. The suicide hotline will be posted. People who once were so bullish and enthused about crypto will eventually succumb to the fear narratives and forget about the space.

Are we there yet? No. We are in a downtrend and not a bear market.the crypto markets are so short memory that they’ve already forgotten we just went through the same type of period in June….

TLDR: HODL