The Crypto Bear Market History!! If you are asked to analyze or study the Crypto Bear Market History, then the first question that pops up in your mind is- why do I need to study the Crypto Bear Market History? How am I benefited from the history of the crypto market? Indeed, we are drawing your attention here. According to our last 10-year long experience of the crypto market, we can say that if you want to reap much gain from the crypto market in the next crypto bull market, which is supposed to happen in 2025, then your first task is to analyze the crypto bear market history because the answer of when and how much the crypto market will move in its upcoming bull run is stashed in the history. It might seem difficult to you as a general crypto user but don’t worry; we are here for you. We have fetched out the top 5 secrets from the crypto bear market history based on which you will be well-capable of utilizing the next bull-run. So, let’s get to the main area of this article.
The Reality of the Crypto Bear Market
You will find one thing common in crypto history, which is that the cryptocurrency market takes much time to transit from one session to another. Simply put, the crypto bull market never retreats to the bear market within one day. So, it leaves confusion in crypto investors about- if the crypto bull market is still live or whether the crypto bear market has just started.
There are four seasons in the entire crypto industry, which are-
- Crypto Bear Market Session.
- Crypto Price Accumulation Session.
- Crypto Price Re-accumulation Session.
- & Finally the Crypto Bull Market.
Actually, we won’t go into depth-discussion about these four sessions in this article because we have already covered the topic in our previously-posted SHIBA Inu article. You can read that article if you want to know about these sessions.
Indeed, we will stay focused on Crypto bear market history throughout this article.
So, how many times has the crypto market gone through the bear trend so far?
- 3 times.
The periods of those bear market were-
- The first Crypto Bear Market: 2014.
- The second Crypto Bear Market: 2018.
- The third Crypto Bear Market: 2022.
The First Crypto Bear Market: 2014
Indeed, 2013 was the first Crypto bull market when Bitcoin touched its $1000 milestone for the first time. At that time, people started expecting the price to reach $10,000 in one go.
- However, the scenario started to change with the crypto bear market appearing in 2014. The price of Bitcoin plummeted to $314 on December 1, 2014, whereas the price was at $1150 in 2013.
- As said earlier, Crypto experienced its first bear trend in 2014. During that time, the price crash of Bitcoin made people think the coin would go to the dogs.
- There weren’t so many Altcoins compared to the present time in 2014. Altcoins also followed the footsteps of Bitcoin’s price down at that time.
The Second Crypto Bear Market: 2018
The crypto market saw its second crash in 2018, the preceding year of which, 2017, was the crypto bull market. That crypto bull market was flamboyant with ICO bubbles. The price of Bitcoin bottomed at $4,000 in the crypto bear market in December 2018, whereas the price was at $20,000 in the 2017 crypto bull market.
- This situation affected the entire crypto market, and most ICO-based crypto projects started to scam.
- 2018 was one of the worst crypto bear markets till now because the year started with a massive market crash. And the entire 2018 was saturated with red candles.
The Third Crypto Bear Market: 2022
We saw the recent Crypto bull market in 2021 when Bitcoin recorded its price at $69,000. At once, we started to think we would see the milestone of $100,000, but the beginning of 2022 has changed everything.
- When we were writing this article, the calendar was showing us the date August 1, and the price had reached the $17,500 level by then. And this price isn’t the highest lower-low position for Bitcoin in the current crypto bear market.
- Bitcoin is expected to hit the highest lower-low position by November to December. But, we will explain the reason behind this expectation in the next stage of this article.
- Predictions of some crypto influencers were such that no crypto bear market would take place in 2022 as they think the present crypto market is mature enough, and it is saturated with useful niches like crypto market NFT, gaming and metaverse. So, this market is less likely to crash like the 2018 immature crypto market.
- However, the 2022 crypto bear market eventually appeared at last for the third time. And now, those so-called prattling influencers are hardly found.
- On the other hand, other Altcoins also fell flat following the price crash of Bitcoin in the 2022 crypto bear market.
So far, we have tried to summarize the gist of the last three crypto bear markets, so let’s cut to the chase.
Top 5 Secrets of Crypto Bear Market History to Utilize the Next Bull Market
- The Crypto bear market starts in the second following year of Bitcoin halving.
- Price fall of any crypto project, regardless of fundamentally strong projects, in the crypto bear market is a common issue.
- The Crypto bear market is the best time for investing.
- Never expect quick returns after investment.
- The project you buy in the bear market must be sold in the next bull market.
1) The Crypto bear market starts in the second following year of Bitcoin halving
We placed this time-related point at the first position in this Crypto Bear Market History-titled article because it is the most significant one. When you know the time of market crashes, they won’t make you nervous anymore rather the crypto bear market crashes will seem expected to you.
- Look, the first Bitcoin halving took place in 2012, and we saw the crypto bear market in 2014. Similarly, 2016 was the second Bitcoin halving year, and the crypto bear market occurred right in 2018, the second following year of the halving year. The same scenario we saw in the 2020 halving year as the crypto bear market was visible in the span of two years.
So, maybe you have gotten a question in mind-
Why does the Crypto bear market occur in the second following year of Bitcoin halving?
- After bitcoin halving takes place, the block rewards of bitcoin miners are slashed in half, lowering the flow of adding fresh bitcoin to the blockchain, triggering the Bitcoin bull market after the halving year. And the price of the majority of the crypto projects skyrockets in the bull market. As a result, crypto investors can gain profits from 5X to 10X and even more. They sell their crypto projects in bulk for a high profit. So, we see a Crypto bear market in the second following year of Bitcoin halving.
So, what should you do as a retail crypto investor when the crypto bear market starts?
- Wait for a good entry.
Look, you have to understand that the crypto bear market doesn’t come to stay for only three to four months. So, don’t leap to buy crypto projects on the market because the crypto bear market exists for two to three years.
Which months in the crypto bear market are best for buying Altcoins considering profitability?
- August & September months of the starting year of the Crypto Bear Market.
If you study the last 10-year long history of the Crypto market, you will see the price of the crypto industry remains low in the August and September months. And it becomes more visible when the crypto bear market is ongoing.
- According to our analysis, the August and September months of the second following year of Bitcoin halving are the best time for buying Altcoins at a low price.
- For example, the August and September months of 2014, 2018, and 2022.
- Always try to buy fundamentally strong crypto projects, the teams of which are innovative and hardworking. Don’t go for any trendy crypto projects even if they are available at a low price because these projects are nothing but a passing fad.
When do retail crypto investors get the opportunity to buy bitcoin at a low price in the Crypto bear market?
- In the November-December months of the second following year of the Bitcoin halving year.
By analyzing the Bitcoin price in the crypto bear market, we found that Bitcoin creates a lower-low price in the November and December months (sometimes in January) when the coin is in its bear trend. These months seem to us to be the best time to grab Bitcoin at a low price.
For example, the November-December months of 2014, 2018, and 2022.
2) Price fall of any crypto project, regardless of fundamentally strong projects, in the crypto bear market is a common issue
What we have told you earlier is the crypto bear market started since 2022, according to the Bitcoin’s 4-year cycle. When maximum crypto projects were bullish in 2021, many started to think the bull run would be lengthy and they wouldn’t see the bear market because the 2021 crypto bull market was saturated with many fundamentally strong crypto projects which hadn’t been available in the pre-2021 bear market.
- For example, there are many popular blockchains in the crypto market layer 1, and every blockchain has a strong ecosystem, like Ethereum, Binance, Solana, Avalanche, Polkadot & NEAR protocol.
- On the other hand, there are so many niche-based successful sectors in the crypto industry, including DeFi-based crypto niche, gaming-based crypto, NFT-based crypto, Metaverse-based crypto & exchange. Before the crypto bear market appeared, many started thinking they wouldn’t see the crypto bear market because the market was saturated with a huge number of people and use cases-flourished crypto projects.
But why did the crypto bear market appear even then?
- Due to the fear of investors.
Before the arrival of the 2022 crypto bear market, many people assumed that the fundamentally strong projects under the Metaverse crypto niche wouldn’t follow the downtrend in the upcoming bear market because Metaverse is a giant industry. But the scenario came opposite for the maximum of the projects in the bear market.
- Actually, the inherent feature of the crypto bear market is that the price of all crypto projects, regardless of fundamentally strong ones, heads downwards during that time.
So, what a crypto retail trader should do before the crypto bear market appears?
- Convert 80% of your crypto portfolio into stablecoins (like USDT, USDC) when it is on profit in the crypto bull market.
It’s a mistake committed by crypto investors that they don’t sell their already-profited crypto asset on the bull market but rather carry it to the bear market. As a result, when the bear market falls on, the percentage of profit drops by 6X to 10X, and sometimes even more. It makes crypto investors frustrated. Due to this mistake, crypto investors can’t enjoy their return even after making profits on the bull market.
3) The Crypto bear market is the best time for investing
According to our experience, we can say that most retail traders think the crypto bear market is their enemy, which kills their profit. This thinking is right for those who can’t read the crypto bear market properly. They think the crypto bear market is bad for them and always have the question in mind ‘’when does the crypto bear market halt?
However, now the question is-
Is the crypto bear market really bad for crypto investors?
- Not at all. Indeed, the crypto bear market offers all potential crypto projects to retail crypto investors at a low price.
- Actually, crypto investors should change their viewpoints about the crypto bear market because they set their mentality from earlier that the crypto bear market is their enemy, which takes away their focus when the bear market is afoot.
- As said earlier, you have to understand the crypto market sentiment first as a successful crypto investor. When the pick time of the crypto bull market appears, you must sell off your already-held crypto on the bull market for high profit and convert them into stablecoin to buy potential projects on the crypto bear market at a discount.
- Let’s think of Ethereum, which reached $4,900 in the 2021 crypto bull market. And the coin again fell below $1000in the 2022 crypto bear market. So, had you sold your Ethereum on the 2021 bull market and then bought it again on the 2022 bear market, you would have gained 5X profit. How amazing the matter is!
- For so, we suggest crypto investors stop thinking the crypto bear market is your enemy rather this bear market makes all crypto projects, including Bitcoin and Ethereum, available for them at a discounted price. So, the decision is completely up to you whether you will think of the bear market as your enemy or an opportunity.
4) Never expect quick returns after investment
After analyzing the last ten years’ historical data of the crypto market, we have found that the crypto bear market is tedious because its one step up is always followed by three steps down. And most of the time, the crypto market undergoes slow motion. So, you are destined to suffer in the crypto bear market regardless of whether you are a day trader or a general trader.
- Indeed, success in this investment area depends on mindset. Consequently, if you nurture a get-rich-quick tendency in the crypto industry, you will feel a mental breakdown shortly. The value of your crypto asset will be standstill when it is halfway through the crypto bear market.
- It is already said earlier that the crypto bear market usually exists for about two years. So, those who invest in the crypto market with a short-time plan are most likely to drop out of the industry soon.
Then, is it impossible to earn from the crypto bear market?
- Not at all. You must apply some tricks to reap gain from the crypto bear market. We have already published an article on how you can earn a lot of profit from the crypto bear market as a general investor. We hope you can take advantage of the crypto bear market if you read this article. And you can get some instructions about how to prepare for the next crypto bull run.
5) The project you buy in the bear market must be sold in the next bull market
Let’s tell you a blazing example of the crypto industry regarding XRP, one of the most popular coins. XRP reached its ATH at $3.84 on January 2, 2018. Later on, the bear market appeared in 2018. So, those who abstained from selling XRP for profit in 2018 in the prospect of more profit had to sell at $0.30 in 2022.
But, what was the consequence?
- A massive loss. Every mistake in the crypto industry is a lesson if you want to learn.
And you can take lessons from others’ mistakes besides yours. That’s why we are making you aware by informing you of others’ mistakes so your mistakes don’t become costly.
Let’s come to the issue of the 2021 Crypto Bull market.
- Solana was a ‘’HOTCAKE’’ in the 2021 crypto market. We found Solana’s ATH at $260 in November. But, when we are writing this article on the crypto bear market in August 2022, Solana’s price is below $40. Now, just imagine how much Solana holders are paying for not selling the coin in the 2021 crypto bull market.
- Let’s talk about Vechain, the price of which reached $0.28 in April in the 2021 crypto bull market. But, many holders expected the price to touch the $1 milestone. We guess they didn’t sell off their Solana at $0.28. However, now in the middle of 2022, the price of Vechain tumbled below $0.03. So, now try to understand their situation.
Actually, we can give hundreds of such examples if you would like to know. The price of crypto projects swells up in the crypto bull market and shrinks in the bear market. The project that you buy in the crypto bear market should be sold at the pick time of the next bull market. Otherwise, you will have to repent for this. Regardless of how much flourished your crypto project is will sink into the crypto bear market.
By the next crypto bull market, there will have so many crypto millionaires who are already making their foundation in the crypto bear market. We strongly hope you won’t miss the train to the next crypto bull market if you have already read this crypto bear market-related article. Pointing out the top 5 reasons, we tried to make you understand the crypto bear market is not inauspicious for you rather it’s the best opportunity. On the other hand, we also explained how should be the mentality of crypto investors about the crypto bear market and how you should take preparation for the next crypto bull market. Learning about crypto is inevitable for you, and the CryptoOOF team is running a relentless effort to make the learning process easier for you. We expect your support.