The question of how long will the crypto bull market last has many different answers. For example, it’s possible that the first wave was longer than we thought, because the dominance of Bitcoin declined. The second wave may last longer because Institutional FOMO forced people to buy into cryptocurrencies sooner than they would otherwise. Other questions to ask are how volatile the market is and how it impacts the economy. The following are some of the possible answers.
Bitcoin dominance declined
The recent news about a rogue bitcoin mining operation has caused a flurry of confusion in the crypto community. The dominance of Bitcoin over the crypto market has fallen to a new low as Ethereum gains momentum. The two cryptos have become increasingly similar in price and have a similar underlying structure. In addition, both cryptos use the same technology, the blockchain, to ensure that transactions are recorded and verified. As such, Bitcoin dominance is not affected by the network’s volatility, but by the price movement of the coins.
This has caused investors to turn to altcoins, and while the Bitcoin dominance is still above 40%, this ratio has been dwindling. A recent blackout in the markets wiped out massive profits for traders, and Bitcoin was among the worst hit assets. Another problem with the cryptocurrency market is the lack of historical data for measuring trends. With such little information, it is impossible to make reliable predictions based on Bitcoin dominance alone.
Institutional FOMO caused the first wave to last longer
The crypto bull market is in a bear phase right now, but it can recover from this slump. The price of cryptocurrencies moves faster than those of stocks do. However, they tend to be shorter-lived, lasting anywhere from a few days to a month. In addition, the exchanges are faster and more volatile, which means that the price of cryptocurrencies can rise and fall very quickly.
One reason that the bull market has been able to persist for a longer period of time is institutional FOMO. After the crypto lockdown, people have looked for alternate sources of income. Since the market is expected to open up again in 2020, consumer confidence is slated to improve. However, the first wave of this bull market may have been a little too long, due to institutional FOMO.
Volatility of the market
One of the reasons that many investors remain wary of the crypto market is the volatility, and this is reflected in the historical price charts of many cryptocurrencies. For example, bitcoin increased more than two thousand percent in 2017 but has since fallen by more than half. The volatility is high and can be exploited by intraday traders. This article will provide some information on how to earn money on the cryptocurrency market. The author also discusses how to use the price charts of cryptocurrencies to your advantage.
In addition to the price index, volatility is also measured in other forms, such as the VIX. This index measures the volatility of the crypto markets by comparing them with more traditional assets. The volatility of the crypto market is distinct from traditional stock and bond markets, yet shares many of the same shocks. However, there are certain differences between the two. In addition to volatility, a cryptocurrency market has a unique set of fundamentals that makes it a great investment vehicle.
Impact on the economy
The economic impact of the crypto bull market is multifaceted. First, the economy is directly linked to asset markets, and a bearish market typically corresponds to a weak economy. Weak economies lead to decreased consumer spending, lower profits for businesses, and a lower risk appetite for speculative investments. On the other hand, a bull market is associated with higher consumer spending and increased investment. Ultimately, a strong economy benefits everyone, including the economy.
Another factor that can cause a bear market in the traditional exchange markets is a high unemployment rate or a war. These are both indicators of a healthy economy, which may boost the confidence of investors. However, these factors do not necessarily translate into a bull market in the crypto space. The fact that the crypto space is so new and relatively young suggests that it does not yet have decades of historical data. Therefore, it is hard to predict how the market will behave.
Significance of a lone whale in a bull market
The significance of a lone whale in cryptocurrencies is largely unknown. It is a crypto investor who artificially inflates the prices of tokens by selling large amounts of them, often without announcing new projects or news that could move the price. The actions of a lone whale can also create a chain reaction as other investors fear they are missing out on a great deal and panic and sell tokens.
To understand the significance of a whale, investors should first understand what a “Whale” is. Whales are big investors who buy and sell cryptocurrencies to gain profit. Whales tend to sell off their holdings in smaller amounts over time. A single whale will often use his power to manipulate the market, and it is crucial to know what types of trades are being made by a lone whale.