The entire cryptocurrency market along with Bitcoin have been experiencing one of the most dangerous moments since 2018. Since the early months of the year, the crisis has managed to wipe close to $1 trillion in market value. The current strife has definitely triggered a wave of mass panic in the community, with the selling activity of the miners of BTC surging to seven-month highs as the profitability of mining has gone down to October 2020 levels. Also, the Fear and Greed Index for the cryptocurrency recently posted the lowest number since the times before the pandemic struck- where it dropped to 7.
Bitcoin Could Benefit from Bear Markets
Such events have not made the crypto industry look good- but this only serves at the first glance, as mentioned by quite a few industry experts. Most of the people in this industry do continue to reiterate that most of the bear markets are actually quite good for Bitcoin and also healthy for the crypto industry, as they readily remove all forms of speculators and scams- all the while providing the space that would build real and great products and services.
Josef Tetek, an analyst of Trezor Bitcoin, recently informed Cointelegraph that the current situation was definitely quite good for BTC in the long term, as it would cleanse the market of every form of scam, leverage, and dishonest institutions. According to this analyst, the earlier bear markets led to the creation of quite a few pivotal projects, which also included the Lightning Network, which was a major project related to the cryptocurrency which enabled faster and cheaper transactions of the cryptocurrency.
Dirk Klee, the CEO of Bitcoin Suisse, mentioned that the crypto market needed to go through several crypto winters in order to fully mature. The executive also mentioned that the stability, quality, and security of crypto products and services became even more important even during uncertain market conditions.