Cryptocurrency is not used to bear markets. While digital assets have generally tended to rise, they have often undergone major corrections.
But there is an opinion that the current correction, or as it has been dubbed, “cryptozyme,” has a number of peculiarities.
The start of crypto was in fact in 2009, with the start of bitcoin. Then the market went from one cryptocurrency to a veritable smorgasbord of different tokens, stackablecoins, smart contract platforms and more. Many cryptocurrencies have often lost more than two-thirds of their value during every economic downturn.
Strong corrections were seen in 2014, right after asset value peaked in late 2013.
The bottom was reached in May 2015. And then the market recovered for 18 months, and there were value records again in 2018.
Then the market bottomed again by the end of 2018. Two years later, in 2021, new cryptocurrency price peaks.
And here we are again down 70% since then. Generally speaking, if you think logically, this has happened to us before, although, of course, it is not pleasant.
We are near or in the midst of a period, after which an uptrend should begin. That, at least, is what the brain is telling us based on history. However, things may be different. Until now, the economy has not been as challenged as it is today. There has been a lot of money in the markets over the past few decades, and that has certainly had an impact on the rise in the price of cryptocurrencies.
Today is the era of quantitative easing in monetary policy in the United States, the largest economy in the world. And so the crypto-zine may last a lot longer than we’re used to.
