The Silver Lining of Bitcoin’s Current Bear Market

Consistent growth by both small and large Bitcoin investors and volatility makes the current bear market much more manageable than past runs.

BTC has plummeted in value by 70% since hitting its peak of $69,000 in November 2022. 

The ongoing bear market may have appeared to be underwhelming for a lot of users, but there actually is a huge silver lining that will keep everyone optimistic about the market. What exactly is this silver lining? Below is what you need to know about Bitcoin’s bear market and why it can be advantageous. 

The Leadup to the BTC bear market

If you’ve wagered your BTC in a crypto casino online, it’s best to know about crypto’s innate volatility first and how the bear market mitigated its effects significantly. The events leading up to the moderation in BTC volatility are a series of occurrences that plummeted Bitcoin’s value. 

The first event that led to the downfall of crypto in 2022 was the collapse of the algorithmic stablecoin terraUSD. This marked the 2022 bear market to become what’s known as the first ‘crypto winter’. It is where crypto is at its lowest for a longer period of time. The 2022 crypto winter is no ordinary bear market. 

A lot of users are worried about the crypto market plummeting further, which will diminish the coin’s value and discourage more investors. However, there are still a lot of things to be optimistic about the current bear market, and it’s not just the cheaper prices of crypto. 

Ease of Volatility

The biggest silver lining during what’s possibly the longest crypto winter is volatility is much more moderate this time around. One of the biggest critiques crypto is constantly receiving is its volatility issues which can be a double-edged sword. 

If the prices go up, it can be beneficial for the users. However, crypto’s volatility can easily make prices go all the way down in a short period. This becomes highly risky for those who have a more conservative view of investing. 

Likewise, the annualized realized volatility of BTC averaged 63% in the past year, which is lower than the average of 79% from previous bear markets. Realized volatility measures the daily shifts in prices of a crypto coin over a period of time. 

It’s not enough that Bitcoin’s 20-day realized volatility matched Wall Street’s tech-heavy price indices, which is the first time it happened since 2020. ‘Bitcoin's volatility has been steadily stabilizing in a bounded range compared to the last bear market. 

‘While this may suggest cryptocurrencies are maturing as an asset class, such patterns also typically precede a large spike in volatility, such as in November 2017’, crypto market data provider CryptoCompare stated. 

There is plenty to be optimistic about when it comes to using crypto like betting in a crypto casino online. With its lower volatility rates and cheaper crypto prices, the market is looking to step in the right direction regardless of crypto winter still lingering. If there's a perfect time to use Bitcoin, now is the best time to do so.