THE CRYPTOCURRENCY BEAR MARKET
Hello to everyone in this wonderful community today and in the steemit platform at large. I greet you all in good spirit and I want to believe that we all are doing just great today and if so we give God the praise for the sustenance of life and good health.
It is indeed a beautiful day and also another weekend before us all today and as such I hope we all are having good times with our loved ones and family. This I consider most important to do in a man's life.
Today as usual, I am here in your presence once again to discuss another important topic regarding cryptocurrency market trading.
The last time I was here, we talked about the cryptocurrency market bull run and I gave some explanation regarding that topic and I discussed extensively on it. I mentioned that the bull run which occurs in the market is being facilitated by the trading volume regarding the greatest cryptocurrency which are the Bitcoin and the Ethereum.
An increase in the trading volume is as a result of the activities of the traders in the market and as they purchase the digital currency, the price value of the cryptocurrencies increases as we get to see higher highs in assets price in the cryptocurrency market.
In a nutshell, when a bull run is spotted in the market this implies that there is a high purchasing power regarding the Bitcoin and hence this foster the increase of price on most digital assets in the cryptocurrency market.
Now that we have talked briefly about our previous lesson, it is recommended that we begin the discussion for today in which I have titled THE CRYPTOCURRENCY BEAR MARKET. This is also an interesting topic to discuss about and it is the opposite of what was discussed yesterday. So sit tight and relax as we begin the teaching for today. I wish you a happy reading.
Before we move on straight to the discussion of the day, it is expedient that we understand a given terminology in other to gain more light regarding the discussion of today's topic which is termed as Bear market. Let's talk about this for a shortly before we continue today's lesson.
WHAT IS A BEAR MARKET?
A bear market can be seen as a situation whereby all the assets in a given phenomenon are depreciating in price value. This is the point by which an asset that was seen on a high value is now depreciating and falling in price as the asset keeps going down.
The bear market always has a particular instigator just the way we get to see in the case of a bull run market. This could be caused by either news, rumors or individual interests on the aspect of those in possession of it. This is the point where traders who has purchased a particular asset when it was high losses funds so well in the market.
Let's take for instance, as a trader you purchased a goods worth $30 in the market and your main plan is to sell that goods when the price of the asset rises above the cost price and eventually you get to notice that the price of the said asset begins to depreciate in price gradually and not just the price of your assets but almost every other traders asset in the market. When this happens it is refer to as a bear market when price of asset goes down or falls below the cost price drastically.
Now that we have understood the meaning of bear market, it is important to relate it to the discussion of today as this brings us back to the today's point of focus.
THE CRYPTOCURRENCY BEAR MARKET
The cryptocurrency bear market just as I have said earlier is quite the opposite of the bull run market. The bear market in cryptocurrency leaves spot traders speechless and as such unhappy and this is because their assets which were purchased in high value with expectations that the assets will rise above their capital or the cost price in other for them to sell when it is high and make profits eventually begins to lose value in the market and right before them they get to notice a fall in asset price even below the cost value of the said asset.
Just as I have said, the bear market does not just occur without a reason. There are factors that affect the cryptocurrency market which may either lead to a bull run or a bear market regarding cryptocurrency.
Let's take an example, for instance a well known company may tweet or make a publication that hence forth they ceased from receiving or accepting the Bitcoin cryptocurrency as a means of exchange for their goods and services due to a factor or another which is unknown.
Immediately that goes viral and it will begin to affect the price of the Bitcoin. Many traders, whales and strong holders of the Bitcoin will begin to sell off the asset because they feel it won't be worth having it if they can not make use of it to purchase an asset from that company that just made an announcement.
This statement alone can cause an uproar and when large holders of the said asset begins to sell off their asset, we get to see a fall in price value of the asset as the volume of sale supercedes that of the purchase, hence the price continues to depreciate in the cryptocurrency market and this do not just affect the price of the Bitcoin alone.
Other digital asset will definitely follow the trend movement of the greatest cryptocurrency asset which is the Bitcoin. Also when that same company comes back to tell us that they are now accepting the Bitcoin cryptocurrency as a means of exchange for their commodity, we get to see a huge buy of the cryptocurrency asset especially that of the Bitcoin.
And when that happens, we get to see a rise in asset price regarding the said currency and almost every other digital asset follows the same trend as that of the Bitcoin because most of them depicts what the price of the Bitcoin depicts in the cryptocurrency market trading.
CONCLUSION
The movement of the Bitcoin is instigated by large traders and holders in the market and most times they do this to their favor leaving small traders all caught of the digital market.
The value of the asset depends on the importance it has been given by traders and the most important assets leads other digital asset in the cryptocurrency market.
It is almost like those who controls the price of the largest digital asset in the cryptocurrency market controls almost all other digital asset as they most times depicts what the Bitcoin price depicts in the market.
The bear market is seen as the scenario whereby all price are seen on the downtrend and this is mostly caused by the movement of the largest cryptocurrency which is controlled by the largest holders in the digital market. So when the price of these asset goes up and continues on that trend, it depicts a bull run market and when we get to see the value of these assets on a downtrend movement for a long period of time it is regarded as a bear market.
Thank you all for your time. I look forward to discussing more with you all soon.
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Thanks professor