Ashish Kumar
The global digital asset market saw a relief rally in the month of January after a massive collapse in 2022. The crypto market cap somehow regained the crucial $1 trillion mark, however, experts issued warnings as the market enters into the last phase of the bear market.
Stage 2 of Bear Market is over?
The complete bear market has been divided into three different phases. While Stage 1 is addressed as “The Unwind” where excitement and greed from the bulls in the market existed. Different narratives were formed during this phase.
This phase saw firms’ valuations drop while these companies didn’t kill their products or layoffs. However, Stage 2 was kind of a forced Capitulation. The crypto market saw narratives dying while the biggest crypto like Bitcoin (BTC) price dropped by 90%. Digital asset firms reported massive layoffs across the board.
Worst is yet to come?
However, the crypto market has not entered into Stage/Phase 3 which has been termed bottomless Exhaustion. Expert hints that this phase has no narratives while crypto prices will consolidate sideways and the market will turn boring.
The current phase is addressed as the toughest part of the bear market. This year is suggested to be too long for the traders as the key metrics will go down day after day. While many traders might leave the market completely.
Meanwhile, the bear market doesn’t test talent as they are formed to test perseverance. Many traders left the market while who stayed in the market were rewarded.
Global digital asset market registered a marginal drop over the past day to stand at $1.05 trillion. The 24 hour trading volume has declined by 10% to stand at $50 billion
Bitcoin and Ethereum has enjoyed the recent recovery rally. BTC and ETH price have surged by around 40% and 33% over the past 30 days, respectively.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
