The world’s largest digital asset manager, Grayscale Investments, has released its latest Insight report which compared the current bear market with other major cycles in crypto history to predict when we could expect a bull run again.
Grayscale Report: The Crypto Market Cycles
The cryptocurrency space has been through some tough times. It’s currently experiencing what analysts are calling the worst bear market in history.
Crypto markets are subject to large fluctuations, with the price swinging up and down dramatically. According to reports, a typical crypto cycle lasts 1,275 days (4 years). The firm noticed that by referring to bitcoin’s realized price, which is the sum of all purchase values divided by the total number in circulation and can be used to determine a cycle timeline.
Grayscale noted that bitcoin’s realized price went below market on June 13th, 2022. This indicated the start of a bear market and is an important event in Bitcoin’s history.
The Best Buy Opportunity
Grayscale’s analysis has shown that the current market cycle could last for less than 250 days (about eight months). But it also gives investors a unique opportunity to buy in at an affordable price before things recover.
From the report, it was discovered that bitcoin’s movement in last year’s all-time high range was longer than in previous cycles. The firm attributed this to the market’s accelerated growth over recent years, which has made it easier for retail and institutional investors alike to get into crypto assets.
“The 2020 cycle appears to have had a longer run in the ATH range with two prolonged peaks in contrast to the sharp rise and fall in prior cycles. This may have been due to the growing maturity of the crypto market that did not exist in previous cycles.”
In addition, Crypto analyst Benjamin Cowen says the release of new US inflation data could hint at a continued bear market for Bitcoin (BTC).
Crypto Always Comes Out Stronger
To conclude the report, Grayscale stated that regardless of the severity of each market cycle, the crypto industry always comes out stronger. The firm also stated that each failure recorded in the space has helped shape the crypto industry, and the current cycle has provided investors with “battled-tested” DeFi protocols.
“Despite price declines, liquidations, and volatility, the crypto industry continues to build and innovate, pushing the boundaries of what is possible,” the firm said.