So, How Long Will This Crypto Bear Market Last?

Crypto bull and bear markets 2013–2022
Crypto bull and bear markets 2013–2022

Bear Market, Recession, Depression — What Is The difference?

To get a clear understanding of what we are talking about, we need to sort out some terminology first.

S&P 500 bear markets, recessions, and depressions visualized. Source: Wall Street Journal
S&P 500 bear markets, recessions, and depressions visualized. Source: Wall Street Journal
  • Both are financial markets with many similarities. So we can take a lot of clues from the stock markets which have a much longer history.
  • The correlation between crypto and US stock markets is high. Meaning that when stock markets go up or down, crypto is most likely to follow. In other words, what affects the S&P 500, likely also has an impact on crypto markets.
Click me.

What Can We Learn From Past Crypto Bear Markets?

Alright. Now that we know where we are standing, what else can we learn from historic data?

2011–2012 bear market

Duration: ~185 days + months of market-moving sideways
Decline: -40%

2013–2015 bear market

Duration: ~415 days + months of market-moving sideways
Decline: -83%

2017–2018 bear market

Duration: ~365 days + months of market-moving sideways
Decline: -84%

2019–2020 bear market

Duration: ~260 days
Decline: -62%

Final Words

Going purely by historical data, it doesn’t look like this bearish cycle is going to end any time soon. Much more, we still have to be prepared for many months of falling prices or, at best, prices moving sideways. But what we also know from experience: the mood around crypto can change very quickly.

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Ren & Heinrich

Ren & Heinrich

Garbage man turned millionaire who writes about crypto and economics. Teaching you how to research & invest 🔬🔑📈 Follow me on Twitter: @ren_heinrich