The panic that has set in after the crisis has caused widespread panic within the Bitcoin community. As the BTC mining profitability drops to October 2020 levels, Bitcoin miners’ selling activity has reached seven-month highs.
Bitcoin’s Fear and Greed Index dropped to its lowest level since pre-pandemic time in Q3 2019. It was seven, which is indicating “Extreme Fear” as of June 15.
According to industry executives and experts, these and other recent events do not look promising, but they are only apparent at first glance.
Industry professionals continue to affirm that bear markets are good for Bitcoin and healthy to the crypto industry. They remove scammers and speculators, while allowing for real products and services to be built.
Josef Tetek, Trezor Bitcoin analyst, stated to Cointelegraph that the current situation is favorable for Bitcoin over the long-term, as it helps cleanse the market of leverage, scams, and dishonest institutions.
Tetek claims that previous bear markets have produced many pivotal projects. This includes the Lightning Network, which is a major Bitcoin-related project that allows for faster and cheaper Bitcoin transactions. The bear market of 2015 saw the initial conception of the Lightning Network.
Tetek stated that crypto winters and bear markets offer more opportunities for building as speculation leaves the market.
Since early 2022, Bitcoin (BTC), and the entire cryptocurrency market have been in one of their most crucial moments. The market has lost more than $1 trillion since 2018.
Bitcoin is good for bear markets. Builders are less distracted and fake “project founders”, who were looking for quick VC funding or a naive retail exit liquidity, disappear much faster than they once appeared. When all the bullshit is washed away, real builders are happy.
Dirk Klee, CEO of Bitcoin Suisse, stated that the crypto market must go through crypto winters to grow and mature. In uncertain market conditions, it is more critical to ensure the quality, stability, and security of crypto products and services. He stated:
“Ultimately, this is what the industry requires to grow further. We aim to live up those standards every day.”
Similar to larger markets, Bitcoin and the entire crypto ecosystem have evolved in cycles over time. Many crypto experts claim that Bitcoin has never traded below its previous peak.
Good morning. pic.twitter.com/gFyjSkqWZL
— Lyn Alden (@LynAldenContact) June 14, 2022
Jesse Powell, CEO of Kraken, stated that Bitcoin price cycles revolve around the Bitcoin halves, a one-in-four-years phenomenon that reduces Bitcoin block rewards in half. This event has historically increased Bitcoin demand and led eventually to bull markets.
Related: “Cheaper than It Looks:” Fidelity executive says BTC is undervalued, and oversold
Powell is well-known for correctly predicting the crypto winter in 2022. However, his previous prediction that Bitcoin would reach $100,000 by 2021 was incorrect.
Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.