There have been bear market cycles that lasted few months and sometimes even years. Bitcoin as a leader in both direction is pulling everything else down at this moment. Whatever direction Bitcoin moves, alt coins tend to follow. Obviously we can officially call this market as a bear market. This is not just a regular correction. Whether there is good news or bad news these little bumps are just a noise. The sentiment is simply too negative, and no new money is flowing into crypto right now.
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When it comes to bitcoin, it has to reach the bottom. How low can it go? I don’t know, but every time we get this selloffs I tend to add to my position. Just like in financial crises many companies has collapsed, we will see the same in crypto market. Until then, we won’s see the bottom. Currently I still have some cash aside waiting for another leg down to be used.
As an example how low we could go is I recently noticed many steemiens powering down including @ned and withdrawing their Steem. In many cases these people were used to living from rewards. They withdrew their SBD’s or Steem from curation rewards or rewards which was enough to pay for rent, food and in many cases even more than that.
Now there is not enough rewards to cover their expenses, they are forced to power down. I fallow few steemiens who is powering down for that exact reason. This may be pushing the price of Steem even lower until they stop powering down. It will take some time, perhaps years, but eventually, it will change. Then the new cycle will begin.
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There are two main reasons why rewards are down so dramatically. One is price of Steem and the other is voting bots. Many people are “delegating” to voting bots which means they don’t contribute in upvoting. If most of us want to get any votes, we have to pay for them. In most cases it’s not even profitable at all, but this doesn’t stop people from buying votes. Unless this changes, the price of Steem will continue downward.
It’s sad, but obviously we have to learn the hard way. At the end we will realize what’s good for steemit community and what is not. This just one example why crypto market continues to go down until it doesn’t. I strongly believe cryptocurency and blockchain technology is here to stay otherwise I wouldn’t be adding to my portfolio in these bloody tough times.
Reasons why crypto will grow again:
- Bitcoin has already gotten status of legal currency from many countries like Russia, Ukraine and other.
- Countries like US, Canada, Japan and European countries are currently working in the direction of regulating it, which clearly shows that bitcoin will be there, but in regulated way.
- Many educational institutes, pvt. companies and other organizations already started working towards educating people about cryptocurrencies and it’s use, which will surely have an impact on number of people using bitcoin and other cryptocurrencies in the near future.