What Investors Can Expect From Cryptocurrency’s Longest Bear Market

A glance at cryptocurrency numbers on CoinMarketCap removes any lingering doubt that cryptos have officially entered into their longest-ever bear market. A similar incident was seen in 2013 when the crypto industry underwent a 410-day bear market. During that time, the price of BTC dropped from roughly $1,000 to about $100. Since 2017 December when the cost of Bitcoin hit an all-time high, the sector has been stuck in a steep downfall. The crypto market has neither been unable to break out of its resistance levels nor recover its upward momentum since — a situation that has caused massive uncertainty regarding the future of the cryptocurrency industry.

General Atmosphere in the Crypto Industry

A recent study published by JP Morgan estimates that the value of the crypto market has fallen to about $113 billion from a 2018 peak of $800 billion. The average value of transactions has also dropped, suggesting that large investors may have lost interest in the crypto craze. It seems as if the nascent crypto boom has collapsed price-wise. Moreover, this market decline has been accompanied by a global crackdown by authorities on blockchain-based firms and exchanges. Authorities are also making moves towards establishing regulations in the industry.

Most industry traders and analysts expect the bear market to extend into Q3 and Q4 of 2019. They believe that this will continue until a formal bottom is established and the industry starts to recover. Peter Du, the founder of Du Capital, believes that unrealistic expectations around new blockchain technologies were a factor contributing to the bearish trend seen today. According to Mr. Du, the very act of maintaining billions of dollars in valuations supported by unsecured coin issuances was unrealistic and was bound to fail in the long-term.

What Investors Can Expect

Despite the bear problem that faces the industry today, most crypto participants are positive about the industry’s future. Even though the crypto winter is one of the longest and harshest ever recorded, crypto start-ups believe it hasn’t been as bad as it could have been. Not everything is all gloom and doom. Established crypto companies are not having as hard a time receiving funding as smaller companies, evident in  Fidelity and Nasdaq expanding their crypto initiatives. Besides, not all countries have banned crypto. Many regions are creating smart regulatory frameworks that protect and will help to nurture the overall industry, providing stability to blockchain companies, and such frameworks are what will help grow the crypto industry into a beneficial and reliable ecosystem.


While it may be difficult to predict whether the crypto market will see any dramatic price gains in 2019, the likeliest outcome is that cryptos are not going anywhere anytime soon. Blockchain, the underlying technology of cryptocurrencies, has spread and integrated into many industries, spawning countless innovations and ideas. Despite everything that has occurred in the industry, the year is still young, and there are numerous companies, projects, and initiatives to look forward to. While the year may or may not turn out to be like the boom year of 2017, it still lies in the hands of all crypto market participants, so every one of us has a role to play and can make a difference.