Since the total value of all cryptocurrencies fell to $1.78 trillion at the beginning of May, the cryptocurrency market has been in a bear market. On April 5, when the market hit a four-month high of $2.27 trillion, this is a drop of just over 20%. And compared to this already bad level, the market has gone down, even more, dropping another 23% by May 12, and has been more or less in the same place ever since.
To answer your question, yes, a bear market is happening right now in the bitqs.io app for the cryptocurrency market. In this post, we give an overview of them and try to figure out which ones do best in a bad market. Some of the things on this list you may already know, but others may surprise you.
As a whole, the cryptocurrency market is now showing very bad signs of going down. Most people think that a lot of different things came together to make things the way they are now. Some of these reasons are growing fears of a recession, tighter monetary policy, and inflation that is out of control.
It’s likely that the price will keep going down for a few more weeks before there are any signs that the trend is going to change. Here are some of the most important things to know about the bear market for cryptocurrencies.
Bitcoin
You may already know that the stock market has something to do with bitcoin and other cryptocurrencies.
When we say bitcoin is “dominant,” we mean that its market cap is a big part of the total market cap of all cryptocurrencies. Back in 2013, this was a huge 95 percent, which wasn’t too surprising since there were only a few other cryptocurrencies at the time.
But when Ethereum and other new crypto currencies came out, Bitcoin’s market share dropped by a lot. During the bull market at the end of 2017 and the beginning of 2018, Bitcoin’s share of the market fell to as low as 34%.
Then, at the start of the so-called “crypto winter” in 2018–19–20, it went back up. At the beginning of 2021, BTC led a new bull market, and the price went up by 71 percent. When “alt season” came around in the middle of 2021 and the beginning of 2022, it was only natural that the number dropped to 40%.
Now, we’re in another weak market, and Bitcoin’s share of the market is once again slowly growing.
Assuming that the current bear market is just getting started, it’s likely that Bitcoin’s dominance will only grow over the next few years. This is good news for investors because it means that bitcoin will do better than most other cryptocurrencies. People are undervaluing it a lot compared to what it could be worth because of the economic downturn.
First of all, Ethereum is still the most popular blockchain platform, and all of its locked assets are worth 64.65% of the total value of the DeFi sector. These are worth $69.58 billion right now. This is up from 54 percent in April, which shows that as things get less clear, people are going back to Ethereum. The way Bitcoin has become the most important currency is the same.
Ethereum is about to switch to a proof-of-stake-based consensus system, which brings us to our second point. Recently, a test net merge went well, which means that the real merge could happen at some point in the summer. Because of this, Ethereum will be easier to scale and use less energy, which will almost certainly make more people want to buy ETH.
Tokens that can be used on the Binance exchange.
Binance coin (BNB) is another token whose value has dropped a lot, but not as much as other popular cryptocurrencies. It has gone down by 3 percent in the last month, and it has gone down by “only” 57 percent since its all-time high of $686 in May 2021.
Even when the market is going down, BNB is still used because it is a utility token that lets Binance users get discounts on trades. The price of BNB stays pretty steady because of this.
