Grayscale Investments explained that there could be another 250 days of the current crypto bear market, citing patterns in previous cycles. Additionally, “Bitcoin is 222 days away from the all-time high, which means we could see another 5-6 months of downward or sideways price movement,” the world’s largest digital asset manager detailed.
Grayscale Crypto Market Outlook
Grayscale Investments, the world’s largest digital asset manager, has released a report titled “Bear Markets in Perspective” this week.
The company explained, “The duration, time to peak and trough, and time to recovery from previous all-time highs in each market cycle may suggest that the current market may resemble previous cycles, which has allowed the industry of crypto to continue to innovate and push new heights.
The report details:
Crypto market cycles average around 4 years or around 1,275 days.
While most bitcoiners are familiar with market cycles based on the bitcoin halving cycle, Grayscale has defined an overall crypto market cycle that also spans a four-year period.
The digital asset manager explained, “While methods vary for identifying cycles in the crypto market, we can quantitatively define a cycle when the realized price breaks below the market price (the current trading price of an asset), using bitcoin prices as a proxy.
“As of June 13, 2022, the realized price of bitcoin has moved below the market price, signaling that we may have officially entered a bear market,” Grayscale described.
The report goes on to explain that in the 2012 cycle, there were 303 days in the zone where the realized price was below the market price of bitcoin. In the 2016 cycle, there were 268 days in the zone.
Noting that in the 2020 cycle, we are only 21 days into this zone, the digital asset manager noted:
We could see around 250 more days of high-value buying opportunities compared to previous cycles.
Furthermore, the report notes that crypto market cycles took around 180 days longer to peak each time.
“From peak to trough, the 2012 and 2016 cycles lasted about 4 years, or 1,290 and 1,257 days respectively, and took 391 days to drop 73% in 2012 and 364 days to drop 84% in 2016” , said Grayscale.
“In the current 2020 cycle, we are 1,198 days to July 12, 2022, which could be about another four months left in this cycle until the realized price returns above the market price,” he said. sued the company, stating:
Bitcoin is 222 days away from the all-time high, meaning we could see another 5-6 months of downward or sideways price movement.
What do you think of Grayscale’s explanation of where the crypto market is heading? Let us know in the comments section below.
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