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Bear cycles are beneficial in market cycles according to crypto experts

The crypto bear market, according to analysts, should not be scary because it may offer better prospects for growth and earni

Although the cryptocurrency markets are unquestionably negative, some industry insiders feel that these conditions will weed out the bad actors and open more opportunities for future entrants.

In bearish market conditions, traders lament the unfavorable price movement and relative difficulties in making profitable deals. Several renowned analysts and builders, on the other hand, think that now is the moment to take actions that will result in the biggest gains when optimistic sentiment returns.

On May 27, Polygon (MATIC) co-founder Mihailo Bjelic told CNBC that the current market crisis and recent significant sell-off were just what the market needed.

Bjelic feels the market got “a bit irrational, or a little reckless” after the overall crypto market cap increased by 12.5 times between November 2019 and November 2021, outpacing most other traditional markets.

“When moments like those arise, [a] correction is usually required, and [is] healthy at the end of the day.”

At the moment, the market is through a significant correction. According to CoinGecko, the whole market cap has decreased by 60% since November, from $3 trillion to $1.2 trillion. Traders still expect further suffering, especially because the previous bear market saw prices fall by approximately 80%.

The DeFi Edge, a crypto market analyst, offered insight into the argument that bear markets have benefits consistent with most market participants’ goals. “Bear markets are healthy for the growth of crypto. The deadweight gets removed, and crypto can soar to new highs.” the account tweeted.

This line of logic is based on the notion that fewer new market participants arrive during a down market, which scammers regard as possible targets. Bitcoin (BTC) transaction volume peaked at 335,411 on November 9 last year, corresponding with the price peak. According to, transaction activity was down 38% on May 29 to only 207,859 transactions.

Lower activity equals fewer opportunities and lower profits for many scammers, so they tend to fade away.

Although prices and activity are lower, according to Jason Ye, a partner at crypto investment firm ROK Capital, bear markets are ideal times for traders and builders to set the groundwork for greater success when market sentiments change. “In a bad market, it is time to uncover the best fundamentals and focus on constructing a product,” he said.

“It’s time for traders to put their cash reserves to work to benefit from the next bull cycle’s upside.” The ones who built in the bear market are always the winners in the bull market.”

Alex Becker, Game Maker of Metaverse game platform Neo Tokyo, mirrored Ye’s sentiment in a tweet on May 28. He also believes that bearish market buyers are the most likely to earn during the next bull market.

“The funniest I’ve realized about crypto Twitter is everyone gets toxic and bitter as fuck in a bear market. Which is ironic because all the money is made Buying in a bear market. Most losses come from buying in a bull market. Shows how ass backwards this place is.”

Small Bitcoin whales may be preventing BTC price’ capitulation,’ according to analysis.

The primary motive of crypto players should be to buy low and sell high. But Becker believes that users on Twitter are the most irritable during a bear market, which he calls “ironic.”