How long will next crypto bear market last? (2023)

How long will the bear market last crypto?

Average bear market length

Around 9.6 months is the average length of the 26 S&P 500 bear markets since 1926.

In times of uncertainty, bitcoin dominance tends to gain ground, and that has come to bear so far in 2022.

The crypto news outlet Coinpedia predicted ETH could end 2022 between $6,500 and $7,500 if the same bullish upswing that started in mid 2021 were to continue. However, 2022 brought a bearish downturn in the crypto market, making it clear that Ethereum's price is not going to rise from sentiment alone.

Ways to Profit in Bear Markets

If it works as planned and the share price drops, you buy those shares at the lower price to cover the short position and make a profit on the difference.

Since 1950, the average bear market lasted 338 days (with a range of 33 to 929 days) and saw the S&P 500 fall an average 30.2% (with a maximum decline of 56.8%).

Short-term bonds in a bear market could help investors weather the (hopefully) short-term downturn. Higher-quality or investment-grade bonds would be a better choice here for investors whose goal is to hedge overall market risk during bear markets.

Bear markets are characterized by investors' pessimism and low confidence. During a bear market, investors often seem to ignore any good news and continue selling quickly, pushing prices even lower. While investors might be bearish on an individual stock, that sentiment may not affect the market as a whole.

One common misconception of bear markets is that they happen at the same time as the economy experiences a recession. While it is true that bear markets usually pair with recessions, they generally don't start simultaneously. Stocks are a leading economic indicator.

Will 2022 be a bull or bear market?

New York (CNN Business) Stocks have been tumbling all year. The Nasdaq, down nearly 25% in 2022, is in a bear market. The S&P 500 is on a six-week losing streak and about 16% below its all-time high.

The crypto market has been on a bull run for a considerable portion of 2021 (no, we're not ignoring the May crash). Although it has certainly seen some dips, one can be fairly assured that this bull isn't going to hit a fence soon.

The next cryptocurrency to consider buying in 2022 is PancakeSwap. In its most basic form, PancakeSwap is a decentralized exchange that was launched in late 2020. The exchange allows users to buy and sell digital tokens without going through a third party.

Aave. Aave is another cryptocurrency that is expected to explode. It is the top crypto-lending platform and is growing fast as DeFi bludgeons onwards and upwards this year and beyond. According to DeFi Pulse, Aave dominates above 15% of the DeFi market, it is indeed the largest so far.

Long-term price predictions suggest that not only can Ethereum reach 10,000 dollars, but it will also reach prices well above that in the future after breaking above its previous all-time high.

For more than 200 years, investing in real estate has been the most popular investment for millionaires to keep their money. During all these years, real estate investments have been the primary way millionaires have had of making and keeping their wealth.

Invest in stocks that have value and that also pay dividends; since dividends account for a big part of gains from equities, owning them makes the bear markets shorter and less painful to weather.

Gold and precious metal fund also tend to perform well as they're seen as more reliable than other investments. Bond prices move in the opposite direction of interest rates, so bond funds are also worth considering in a bear market.

One definition of a bear market says markets are in bear territory when stocks, on average, fall at least 20% off their high. But 20% is an arbitrary number—just as a 10% decline is an arbitrary benchmark for a correction.

Bear markets are quite common. Since 1900, there have been 33 of them, so they occur every 3.6 years on average.

How often do bear market occur?

Since 1932, bear markets have occurred, on average, every 56 months (about four years and eight months), according to S&P Dow Jones Indices.

The longer it takes for a trade to be settled, the likelihood increases that investors who have lost a lot of money in a market slump will not be able to pay for the trades. As a result there is a so-called stock ​three-day​ rule that requires security transactions to be settled within ​three business days​.

If you are a short-term investor, bank CDs and Treasury securities are a good bet. If you are investing for a longer time period, fixed or indexed annuities or even indexed universal life insurance products can provide better returns than Treasury bonds.

A bear market is traditionally thought of as a time when an asset trades below its prior high by 20% or more, usually accompanied by a lot of pessimism about the near-term future. But this is a nonsensical way to think about crypto. A 20% drop could be just a weird Tuesday.

Bear markets are often associated with declines in an overall market or index like the S&P 500, but individual securities or commodities can also be considered to be in a bear market if they experience a decline of 20% or more over a sustained period of time—typically two months or more.

Buying when stocks are in a bear market is generally a good strategy. Newsflash — buying stocks when they're on sale tends to be a winning strategy over the long run. Even if you have to eat some further losses, buying stocks after they have already fallen 20% has led to nice returns historically.

The US bear market of 2007–2009 was a 17-month bear market that lasted from October 9, 2007 to March 9, 2009, during the financial crisis of 2007–2009.

Fortunately, the market usually bounces back fast from these modest declines. The average time it takes to recover from those losses is one month. Deeper declines have happened, but they occur less frequently.

2020: As COVID-19 spread globally in February 2020, the market fell by over 30% in a little over a month. But by August 2020, the market had already rebounded, taking six months to recover.

At the same time, XRP is also a good investment for thematic investors in the financial sector seeing as XRP is a coin aimed at mainstream financial institutions. This means that people looking to invest in the future of transactions and payment would have a good shot at looking at XRP.

Which crypto to invest in 2022?

Dogecoin (DOGE)

DOGE has to be hands-down one of the top cryptocurrencies to buy this 2022. Dogecoin is one of the most interesting coins especially with Elon Musk spearheading the conversation on Twitter every time.

The Dow is down nearly 15% in 2022, while the Nasdaq has dropped 29%.

Back in November, Morgan Stanley revealed its “2022 year ahead outlook,” which predicted a 20% drop ahead for the S&P 500 and described how two forces would act together to slow the then-raging stock market.

So, if you're asking yourself if now is a good time to buy stocks, advisors say the answer is simple, no matter what's happening in the markets: Yes, as long as you're planning to invest for the long-term, are starting with small amounts invested through dollar-cost averaging and you're investing in highly diversified ...

According to Du Jun, Co-Founder of Huobi, Bitcoin may only see a new bull run in 2024 or 2025 once the blockchain sees a new halving. “Following this cycle, it won't be until end of 2024 to beginning of 2025 that we can welcome next bull market on Bitcoin,” Jun told CNBC.

Given its volatile nature, it is possible that bitcoin will gather momentum again at some point in the future (perhaps weeks, months or even years down the line). But no one has a crystal ball. So it's impossible to say for sure whether bitcoin will crash in the future.

Financial experts say the next bitcoin bull run will most likely be in 2024, if historical patterns are to be believed.

Binance Coin (BNB)

Binance is the most successful cryptocurrency exchange in terms of trading volumes. Like bitcoin, binance coin keeps a hard limit on the number of tokens in circulation — in its case, 165,116,760 tokens. This helped the token price increase exponentially in 2021.

What is the newest crypto to buy?

With Bitcoin's big fall since then, the prediction game is even trickier. The most extreme crypto skeptics say Bitcoin will tank to as low as $10,000 in 2022, but a middle ground might be to say the cryptocurrency can still climb to $100,000 like many experts predicted late last year — just on a slower timeline.

Algorand. Algorand uses the advantages of both centralized and decentralized blockchain projects. It is efficient and effective, like a centralized platform and governance model of decentralized projects which ensure accountability. It is one of the best altcoins that are set to explode in March 2022.

Ethereum could reach $20,000 by 2025 according to a Finder's panel. Ethereum has since been gaining momentum, starting out at $1,000 at the beginning of the year and reaching an all time high of $4,196.63, according to Coin Metrics. Before losing steam and dropping down to its current price at $2,400.

The crypto could reach a price of $1.3 million calculated using M0 and may top $4.8 million using M2, according to the analysts. Bitcoin is trading at around $46,363, up 1% over the past 24 hours, according to CoinDesk data.

Transaction speed – Because Ethereum is faster to mine, transaction speed is much faster than Litecoin. Because Litecoin transactions get put into newly mined blocks, its transaction speed is slower. This means Ethereum is better for small transactions.

According to Du Jun, Co-Founder of Huobi, Bitcoin may only see a new bull run in 2024 or 2025 once the blockchain sees a new halving. “Following this cycle, it won't be until end of 2024 to beginning of 2025 that we can welcome next bull market on Bitcoin,” Jun told CNBC.

On the other hand, a bear market is one in which the value of cryptocurrencies has fallen by at least 20% and is continuing to fall. An example includes the famous cryptocurrency crash in December 2017, when investors saw Bitcoin fall from $20,000 to $3,200 over the course of a few days.

The Bitcoin ecosystem is still developing, making it possible if not likely that Bitcoin itself will continue to evolve over the coming decades. But however Bitcoin evolves, no new bitcoins will be released after the 21-million coin limit is reached.

Is the crypto bull market finished?

People have started to speculate the end of crypto bull run due to recent dips. But the truth is, it isn't over yet. Read on to know why. The crypto market has been on a bull run for a considerable portion of 2021 (no, we're not ignoring the May crash).

Aave. Aave is another cryptocurrency that is expected to explode. It is the top crypto-lending platform and is growing fast as DeFi bludgeons onwards and upwards this year and beyond. According to DeFi Pulse, Aave dominates above 15% of the DeFi market, it is indeed the largest so far.

Given its volatile nature, it is possible that bitcoin will gather momentum again at some point in the future (perhaps weeks, months or even years down the line). But no one has a crystal ball. So it's impossible to say for sure whether bitcoin will crash in the future.

Crypto winter refers to a prolonged period of falling prices. The last crypto winter began in early 2018 and saw bitcoin lose over 87% of its value in a year compared to its all-time high in December 2017. The total market value of cryptocurrencies fell by 88% during the crypto winter of 2018 (TradingView).

Financial experts say the next bitcoin bull run will most likely be in 2024, if historical patterns are to be believed.

Bitcoin is likely entering a bear market , and the next major rally probably won't come until late 2024 or early 2025, according to the co-founder of one of the world's biggest crypto exchanges.

It's most accurate to see a crypto bear market as a long period of consistent price declines. The opposite of a bear market is a bull market -- a time when prices are increasing and confidence is high. Prolonged and extreme price drops are some of the most testing times any investor can face.

With Bitcoin's big fall since then, the prediction game is even trickier. The most extreme crypto skeptics say Bitcoin will tank to as low as $10,000 in 2022, but a middle ground might be to say the cryptocurrency can still climb to $100,000 like many experts predicted late last year — just on a slower timeline.

The next cryptocurrency to consider buying in 2022 is PancakeSwap. In its most basic form, PancakeSwap is a decentralized exchange that was launched in late 2020. The exchange allows users to buy and sell digital tokens without going through a third party.

Bitcoin (BTC) fell below $30,000, sinking to $26,597, as the TerraUSD (UST) stablecoin crashed far below its $1 peg, applying more downward pressure on the overall market. But fear not: The cryptocurrency market won't crash to zero, Sam Bankman-Fried told Fortune.

Is it bull or bear market 2022?

Investors now expect a bear market in 2022, but don't rule out the bull: BofA.

Next to Bitcoin, Litecoin is the top cryptocurrency as of now. So, if Bitcoin is just a little too expensive for you to invest in, try Litecoin. It's nearly identical to Bitcoin, but transactions are faster – which is one of its biggest draws.

The largest hodlers are called whales, who hold over $1 million worth of crypto in their wallets. Hodling is an industry term for users who hold large amounts of crypto without selling them, in hopes of future profits.