Contrasting The 2022 Market Crash To 2018s Crypto Winter

Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information. As pointed out by Willy Woo, a popular on-chain analyst, the Bitcoin 4-year-cycle will disappear in the future.

When the market's sentiment is positive, and prices are rising continuously, there is said to be a bullish trend . The opposite is called a bear market, when there is an ongoing decline in prices. In contrast to the Nasdaq after the crash in early 2000, however, the rising numbers of investor involvement in the cryptocurrency market hint that the dotcom boom and bust may not be a precedent for the crypto market. Figure 3 shows the historical price time series and the aggregated number of addresses on the blockchain. The steady increase in the number of wallets is a signal of constantly growing investor interest in the cryptocurrency sector.

The first two peaks on the above chart technically belong to the same bitcoin cycle as they occurred in April 2013 and November 2013, respectively. Bitcoin’s first halving event had only just taken place on November 28, 2012. Some of you will recall that the European debt crisis was in full swing during that first peak in April, specifically the bail-in of Cypriot banks. Then, the second peak marks the implosion of Mt. Gox, the biggest bitcoin exchange at the time. The image below plots the moving average crossovers mentioned above over a daily BTCUSD chart going all the way back to 2013.

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