The Bitcoin bear market will likely end sometime around the halving in May 2024. But there will likely be a big run-up
in the price before that due to the weak economy and rampant inflation of the United States dollar. One thing is for certain – Bitcoin is not going to zero.
Cryptocurrency has entered what many have described as a bear market. The price of Bitcoin, the cryptocurrency with the largest market cap, has fallen from a record high of $68,000 in November 2021 to a current price of $20,000. The price of altcoins has suffered the same fate as Bitcoin with many altcoins seeing drops of over 75% from their all-time high around November 2021.
Cryptocurrency skeptics claim that the price of cryptocurrencies will never recover. However, skeptics say that during every bear market, so it’s not a particularly useful take at this point. The price of Bitcoin will almost certainly recover like it has done after every bear market. The bigger question is when will the recovery take place. An argument can be made that the bear market will end around the next Bitcoin halving because that is what has always happened, but there are multiple factors that could cause an even earlier end to the current bear market.
Here’s Why This Bear Market Different Than Previous Bear Markets
First things first, the cryptocurrency skeptics are right about one thing – this bear market is a lot different than the previous bear markets for one reason. This bear market is occurring during what will almost certainly be considered a global economic recession. The simple fact is there is no one really knows how the market will react to Bitcoin during a recession because Bitcoin was created immediately after the last recession.
With that in mind, we can make educated guesses about how the market will treat Bitcoin during a recession. The two most basic ways the market can look at Bitcoin is either as a speculative asset with a high risk and high return or as a store of value for inflation. This might not sound important, but it’s incredibly useful for properly estimating when the crypto bear market will end.
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