Bull markets make money, bear markets make opportunities
As greed indexes stabilize after a buying binge, smart money begins to look for more unique and inherently fruitful opportunities.
Solana, Cardano, CryptoKitties and other highly influential blockchain projects were initially developed during a bear market. Bitcoin (BTC) itself was designed by Satoshi Nakamoto amid the king of bear markets — the 2008 global financial crisis, which became a loud wake-up call about how flawed traditional finance can be.
Bull runs can make almost any asset look attractive and the industry appear less risky than it really is. However, when the tides turn and the charts begin to weaken, even the most fervent optimists may find themselves in a precarious situation where their accustomed decision-making approaches no longer prove effective.
In such cases, adjustments become necessary to successfully navigate downturns. This exploration aims to shed light on potential strategies for adapting to changing market conditions.
Volatility indexes and transaction volume metrics aptly capture the cyclical nature of markets of all types, including digital assets. Spikes in volatility often mean that market participants are adjusting to a new state of risk and opportunity, providing great insight into the complex beast that is a market.
Market psychology attempts to describe it in more familiar, emotional terms such as disbelief, euphoria and denial.
However, these metrics and even market psychology cannot describe the true inner condition of the extended Web3 ecosystem that is at the core of the market.
According to Alchemy’s Web3 Development Report, despite a significant drop in consumer crypto confidence in Q4 of 2022, blockchain developer activity experienced a remarkable increase of 453%. The drop
Read more on cointelegraph.com
