In Crypto’s Longest Bear Market, Trader Foresees an Imminent End
Although altcoins tend to outperform Bitcoin during bull markets, it will be the cryptocurrency’s big dog that leads the way.
Bitcoin’s upcoming 2024 halving will play a big role in a potential end to the bearish market conditions.
As a member of the cryptocurrency community, it can seem like bear markets roll on forever. Historically, this has been true for the digital currency market, with crypto winters tending to last for ~2-3 years, while groundbreaking bull runs come and go within 12 months. The most recent bear market has been in place since the start of 2022 – but according to popular crypto influencer Michael van de Poppe, an end may be in sight.
Altcoins Dictate Bear Market, But Bitcoin Events Will Spur Market Interest
Although the bear market hasn’t been “official” for quite so long, many of the industry’s most popular altcoins have been on the downtrend since early in 2021. For example, Chainlink’s (LINK) peak price occurred in August 2020, while many others saw their values start sliding after May 2021. This represents a bear market of nearly 29 months, close to the longest in cryptocurrency history.
However, in a tweet, van de Poppe expressed confidence that there’s light at the end of the tunnel – thanks to the big Bitcoin events coming up in 2024:
“We’re close towards a Bitcoin halving, but also a spot ETF on Bitcoin…more institutions are starting to realize that Bitcoin is actually a digital version of gold, and perhaps even better”.
#Altcoins are in the last part of the bear cycle.
Yes, it feels relatively painful. The sentiment is completely gone, no interest in crypto.
The only thing moving is #Bitcoin and, yet, that one needs to crack some levels.
The end is near for the bear market. Read here… pic.twitter.com/TLijWdMNKF
— Michaël van de Poppe (@CryptoMichNL) October 18, 2023
Bitcoin Likely First to Breakthrough
As with previous bull markets, Bitcoin will likely be leading the way. Investors won’t start to put their money into altcoins and riskier investments until they’re confident a positive market is starting to take shape.
Van de Poppe believes that the catalyst for this will be Bitcoin’s halving in 2024 – an event that has previously kick-started the industry’s two biggest bull runs. In August 2019, Bitcoin dominance reached its (at the time) peak as altcoins sunk to their lowest point in recent history. And yet, just a few months later, they broke out of their downtrend and burst into the most explosive altcoin rush the crypto market has seen.
Source: tradingview.com
We’ve all heard the phrase: past performance is not a reliable indicator of future performance. But with Bitcoin dominance at a two-year high and altcoins bleeding money and liquidity, the conditions are almost identical to 2019. The Bitcoin halving event is just a few months away, and the community will watch with bated breath to see whether it can arrest the crypto world from its prolonged bear market.
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Filed under: Bitcoin - @ October 19, 2023 2:47 am