Market-cleansing bear cycles are healthy, say industry experts

Analysts say the crypto bear market should not be feared because it offers potentially greater opportunities for growth and profits than a bull market, so traders should be taking note.

Crypto markets are undeniably bearish, but some industry insiders believe these conditions will shake out the bad actors and create greater opportunities for future participants.

Traders tend to lament the negative price action and relative difficulty in executing profitable trades in bearish market conditions. However, several leading analysts and builders agree that this is the time to make moves that will lead to the greatest gains when bullish sentiments return.

Polygon co-founder Mihailo Bjelic told CNBC on Friday that the current downturn and recent major sell-off earlier this month were just what the market needed.

Bjelic believes that the market became “maybe a little bit irrational, or maybe a little reckless,” as the total crypto market cap grew by 12.5 times between November 2019 and November 2021, a tremendous growth rate that outpaced most other traditional markets:

Jason Ye, partner at crypto investment fund ROK Capital, explained that although prices and activity are lower, bear markets represent prime times for traders and builders to lay the foundation for greater success when market sentiments reverse. He told Cointelegraph on Monday that “In a bear market, it is time to find the best fundamentals and focus on building a product:”