On Aug. 28, MN Trading CEO and founder Michaël van de Poppe said the current bear market is relatively comparable to what we’ve witnessed in 2015.
He added that it was essentially a period of sideways action, where the faith in crypto is slowly getting lost too, “despite the fact of solid fundamental growth.”
The longest bear market in history for #Bitcoin
It might feel like a ghost town in crypto. It might feel like there’s not even going to be a bull cycle anymore and I understand why these thoughts are there.
Well, people base their decisions on history. 👇… pic.twitter.com/Ljtv9wmw12
— Michaël van de Poppe (@CryptoMichNL) August 27, 2023
Bitcoin Bears Sticking Around
BTC prices are currently down 62% from the previous peak, which was nearly two years ago. Therefore, the bear market has lasted for 490 days, much longer than previous cycle lows.
There are several possible reasons for the prolonged crypto winter this cycle. An unprecedented pandemic ravaged the world, forcing governments to lockdown, which has caused no end of damage to economies and livelihoods.
Moreover, several high-profile crypto collapses in 2022 created a major response from regulators eager to crack down on the industry.
Surging interest rates have also impacted the world’s battered economies and provided lower-risk returns for investors but have also added to the debt mountain.
However, it’s not all doom and gloom. The world’s largest asset manager BlackRock is keen on Bitcoin and crypto, having stakes in major mining companies and applying for a spot ETF. Analysts are expecting such a product to be approved this year, which means major institutional investment.
There are other fundamentals also, such as a pivot to crypto in Hong Kong and Asia and an approaching Bitcoin halving. The analyst added:
“The thing is, during the current period, these events are not being reflected in price at all. They lag behind as the market is stuck in the ‘bear market modus’, as the past 2 years price has been falling.”
BTC Price Outlook
Bitcoin has hardly moved over the weekend, sitting at around the $26,000 price level. The asset is flat on the day at $26,045 at the time of writing.
It has found a new support zone for consolidation since its 10% slump on Aug. 17. Volatility and volumes are dwindling again, so things could stay this way for a while.
Moreover, the total market cap was at $1.09 trillion during the Monday morning Asian trading session after a very quiet weekend.