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Grayscale: Present Crypto Bear Market Is Likely To Last 250 Days More If Previous Market Cycles Repeat

The new Insight report of Grayscale points out some interesting facts about the crypto market, discussing the beginning of the bear market in 2022’s June which could be prolonged to approximately 250 days in the case of the repetition of the former market cycles.

Crypto Markets Imitate Their Traditional Counterparts

Grayscale mentions that the markets of cryptocurrency imitate their traditional counterparts with recurring movements. The market cycles of Bitcoin (BTC) normally take up to 4 years or nearly 1,275 days. According to the assertions of the company, a cycle is defined as a time when BTC’s realized price plunges below the present market price. When the assets’ cumulative number at the purchase price is divided by their market capitalization, the realized price is determined.

This provides a calculation of the number of beneficial positions. On Wednesday Bitcoin’s realized price dropped below the market price and this was labeled by Grayscale as the beginning of the ongoing bear market. The venue is of the view that this shows a remarkable investment chance which will be prolonged to nearly 250 days starting from July in the case of the recurrence of the former cycle.

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Grayscale Cites 2012-2015 Market Cycle

Referring back to the history, Grayscale brought to the front the market cycle of 2012-2015in which the incidents such as the fall and rise of Silk Road (a marketplace of the dark web) as well as the notorious debacle – Mt. Gox – which paved the way toward the initial chief bear market. Development that occurred on the network of Ethereum, prominent wallet providers, and exchanges directed toward a slight climb to the approaching highs across the market.

The time between 2016 and 2019 is of great significance in terms of the progress that the initial coin offerings (ICOs) witnessed. This became possible due to the smart contract operability that Ethereum introduced. A considerable amount of capital flowing into the ecosystem of cryptocurrency in 2017’s latter part came to an end in the next year, with the start of the 2nd chief bear market.

As put by Grayscale’s report, the market of 2020 was centered around leverage trade by the investors. An optimistic funding rate endured for almost 6 months and several traders leveraged the positions while utilizing crypto as collateral.

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With the plunge witnessed in the crypto prices, the traders were compelled to trade their assets, resulting in liquidation flow lowering from $64,800 to touch $29,000’s figure in June the previous year.


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Mubashar Nawaz (United Arab Emirates)

Mubashar Nawaz is an experienced crypto writer working for Tokenhell. Having passion for writing, he covers news articles from blockchain to cryptocurrency.

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