As a seasoned crypto analyst, I find it intriguing that we are on the brink of what could be the industry’s first ever secular bear market. This prediction suggests a sweeping transformation is imminent, characterized by a prolonged downturn lasting potentially for years-long cycles typically associated with the cryptocurrency projects and newcombingo, as they call themselves, forecast that most of the existing projects will be erased in this bear market, never to return. In their place, the FAANG of crypto – the Future Assets of New Generation – will emerge and thrive for the next couple decades.
Experienced cryptocurrency experts are starting to predict that the industry may experience its first long-term bear market – a significant shift that could last for several years, which is unusual given the shorter cycles usually seen in the crypto market
Crypto’s First Ever Secular Bear Market
Discussion about this transition started when someone posed a question to CrediBULL Crypto (@CredibleCrypto), a well-known crypto expert with over 400,000 followers on X, regarding the influence of celebrities and athletes launching their own cryptocurrencies. Addressing worries that this phenomenon could water down the integrity and practicality of digital currencies, @CredibleCrypto shared his firm perspective on the direction the market might take in the future
According to CredibleCrypto, it’s likely that most of what we see now in this market won’t survive the upcoming bear market. This would be the first long-term bear market for this space since its beginning. The dot-com crash in crypto will be similar, with 99% of inferior projects disappearing forever, while the ‘FAANG’ of crypto (the top, representing the leading and Next-Gen Apple, symbolizing , representing Amazon, representing Apple, standing for the top cryptocurrency projects that will continue to flourish for the next several decades)
Comparing it to the dot-com bubble, this scenario suggests that just as the burst of the bubble cleared out weaker internet companies, leaving behind tech giants, a prolonged crypto bear market might also sweep away less substantial, speculative projects, creating space for more robust projects to flourish and become dominant
In response to the conversation, @astronomer_zero, a cryptocurrency analyst, emphasized the common psychological patterns leading up to such declines. He stated, “Indeed, the festivities will soon end. As we experience another phase of exuberance beforehand, for markets rarely collapse due to fear. Instead, a significant crash necessitates widespread euphoria. In essence, ‘A bubble cannot burst unless it first inflates.’ This way, we get a taste of the hype surrounding celebrity/mainstream adoption, drawing in additional liquidity to exacerbate the downturn. A secular bear market is expected to commence around 2026 or 2027.”
It’s becoming more common to hear predictions of a potential economic downturn in the U.S., along with warnings of a peak or “blow off top” scenario for the global financial markets, as the S&P 500 is currently showing a steeper incline than it did just before the Great Financial Crisis (GFC) in 2007. However, an analyst has pointed out that the S&P 500 may not be closely tied to Bitcoin, and Bitcoin could be transitioning into a secure asset faster than many people anticipate
Among those advocating for this idea is Henrik Zeberg, chief macroeconomist at Swissblock. He proposes that if the U.S. Federal Reserve takes preventive actions by injecting significant amounts of liquidity to ward off a recession, it might propel major stock indices to record-breaking levels
According to Zeerg’s prediction, the S&P 500 could range from 6,100 to 6,300, the Nasdaq might reach 24,000 to 25,000, the Dow Jones is estimated to be around 45,000, and Bitcoin may peak between $115,000 and $120,000. However, a recession could start by December 2024
In simple terms, a “secular bear market” refers to a long-term economic slump, with historical parallels seen in traditional financial markets. These extended periods of decreasing asset prices can span multiple economic cycles. Unlike cyclical bear markets which are short-lived and recover quickly, secular bear markets show prolonged stagnation or decline, with occasional brief improvements that do not return to the previous highs.3D solution for the expression
Common examples for periods without religious influence are The Great Depression (1929-1942) and the Dot-com Bubble Burst (2000-2013). After the burst of the dot-com bubble in 2000, US stock markets, particularly tech-heavy indices like NASDAQ, went through technology, suffered a long, underwider, experienced a significant downturn, experienced a significant downturn. The NASDAQ, showed, experience, showed, for instance
At press time, Bitcoin traded at $57,188.
Read More
Sorry. No data so far.
2024-09-05 15:05