{"id":454883,"date":"2022-05-30T07:06:09","date_gmt":"2022-05-30T04:06:09","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/market-cleansing-bear-cycles-are-healthy-say-industry-experts\/"},"modified":"2022-05-30T07:06:09","modified_gmt":"2022-05-30T04:06:09","slug":"market-cleansing-bear-cycles-are-healthy-say-industry-experts","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/market-cleansing-bear-cycles-are-healthy-say-industry-experts\/","title":{"rendered":"# Market cleansing bear cycles are healthy say industry experts"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3be31ec8579\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3be31ec8579\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/market-cleansing-bear-cycles-are-healthy-say-industry-experts\/#%E2%80%9D_Market_cleansing_bear_cycles_are_healthy_say_industry_experts_%E2%80%9C\" >&#8221; Market cleansing bear cycles are healthy say industry experts &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Market_cleansing_bear_cycles_are_healthy_say_industry_experts_%E2%80%9C\"><\/span>&#8221; Market cleansing bear cycles are healthy say industry experts &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvMzMwMTM5N2EtYTI3Yy00ZWRjLWJmOGYtZjg3YzgzMjk4ZmYwLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>Crypto markets are undeniably bearish, but some industry insiders believe these conditions will shake out the bad actors and create greater opportunities for future participants.<\/p>\n<p>Traders tend to lament the negative price action and relative difficulty in executing profitable trades in bearish market conditions. However, several leading analysts and builders agree that this is the time to make moves that will lead to the greatest gains when bullish sentiments return.<\/p>\n<p>Polygon (MATIC) co-founder Mihailo Bjelic <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cnbc.com\/2022\/05\/27\/cryptocurrency-firms-hope-bear-market-will-remove-bad-players.html\">told<\/a> CNBC on May 27 that the current downturn and recent major sell-off earlier this month were just what the market needed. <\/p>\n<p>Bjelic believes that the market became \u201cmaybe a little bit irrational, or maybe a little reckless,\u201d as the total crypto market cap grew by 12.5 times between November 2019 and November 2021, a tremendous growth rate that outpaced most other traditional markets. <\/p>\n<blockquote><p>\u201cWhen the times like that come, [a] correction is normally needed, and at the end of the day [is] healthy.\u201d<\/p><\/blockquote>\n<p>The market is in the midst of a major correction at the moment. Since last November, total market cap has dropped by 60% from $3 trillion to $1.2 trillion according to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coingecko.com\/en\/global_charts\">CoinGecko<\/a>. Cointelegraph reported on May 28 that traders still expect more pain, especially considering the last bear market drew prices down about 80% overall.<\/p>\n<p>Crypto market analyst The DeFi Edge added context to the idea that bear markets carry benefits that remain in line with the interests of most market actors. The account tweeted to its 164,000 followers on May 29 that \u201cbear markets are healthy for the growth of crypto.\u201d<\/p>\n<p>This line of reasoning is based on the observation that fewer new market participants, which scammers see as potential targets, enter during a bear. Over the last year, Bitcoin (BTC) transaction volume peaked on Nov. 9 at 335,411, coinciding with the peak in price. On May 29, transaction volume was down by 38% to only 207,859 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.blockchain.com\/charts\/n-transactions\">according<\/a> to Blockchain.com. <\/p>\n<p>Lower activity means less opportunity and reduced profitability to run many scams, so they tend to dis<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ear.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Bear markets are healthy for the growth of Crypto.<\/p>\n<p>The deadweight gets removed and Crypto can soar to new highs. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/5wKEzHxy6B\">pic.twitter.com\/5wKEzHxy6B<\/a><\/p>\n<p>\u2014 The DeFi Edge \ufe0f (@thedefiedge) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/thedefiedge\/status\/1530580444303044608?ref_src=twsrc%5Etfw\">May 28, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Jason Ye, partner at crypto investment fund ROK Capital explained that although prices and activity are lower, bear markets represent prime times for traders and builders to lay the foundation for greater success when market sentiments reverse. He told Cointelegraph on Monday that \u201cIn a bear market, it is time to find the best fundamentals and focus on building a product.\u201d<\/p>\n<blockquote><p>\u201cIt&#8217;s time for traders to deploy their cash reserves in order to get an upside in the next bull cycle. As always, the winners in the bull market are the people who built in the bear market.\u201d<\/p><\/blockquote>\n<p><a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">Game<\/a> Maker at Metaverse game platform Neo Tokyo, Alex Becker, echoed Ye\u2019s notion in a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ZssBecker\/status\/1530264704584667143\">tweet<\/a> on May 28. He also believes that bear market buyers are the ones in the best position to turn a profit during the next bull. He said that \u201call the money is made buying in a bear market. Most losses come from buying in a bull market.\u201d<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Small Bitcoin whales may be keeping BTC price from &#8216;capitulation&#8217; \u2014 analysis<\/em><\/strong><\/p>\n<p>Becker added that although buying low and selling high should be the key factor driving crypto market participants, he suggested that people on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> are the most disagreeable during a bear market, which he called \u201cironic.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The funniest I\u2019ve realized about crypto twitter is everyone gets toxic and bitter as fuck in a bear market.<\/p>\n<p>Which is ironic because all the money is made Buying in a bear market.<\/p>\n<p>Most losses come from buying in a bull market.<\/p>\n<p>Shows how ass backwards this place is.<\/p>\n<p>\u2014 Alex Becker  (@ZssBecker) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ZssBecker\/status\/1530264704584667143?ref_src=twsrc%5Etfw\">May 27, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/market-cleansing-bear-cycles-are-healthy-say-industry-experts\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Market cleansing bear cycles are healthy say industry experts &#8220; Crypto markets are undeniably bearish, but some industry insiders believe these conditions will shake out the bad actors and create greater opportunities for future participants. Traders tend to lament the negative price action and relative difficulty in executing profitable trades in bearish market conditions&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":454884,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvMzMwMTM5N2EtYTI3Yy00ZWRjLWJmOGYtZjg3YzgzMjk4ZmYwLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,113408,73711],"class_list":["post-454883","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-polygon","tag-investments"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/454883","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=454883"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/454883\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/454884"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=454883"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=454883"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=454883"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}