The crypto market is not the safest in the world. Because of their decentralized nature, no one can predict when the next big crash will happen. However, we can see the market’s recent history. In 2018, the price of bitcoin fell 70% before recovering to a new low. In November 2018, it fell to an all-time high. In late 2018, the price of Ethereum went down, but recovered within a few days.
This week’s price action does seem to make this look like a bear market, but it’s not exactly the case. The price is falling and the next crash is coming closer and closer. So what’s the difference? Well, if you look at the market’s recent history, it’s clear that crypto is a speculative asset that is very volatile. If you look at the last 14 months, all of the major cryptocurrencies have seen massive price drop.