There is no surprise that crypto investors are in the midst of a bear market, where prices are rarely moving up and are often fluctuating sideways. Is it possible to make money in bear markets? The answer is yes, but much less than if the bulls began charging and butting their sharp horns into the backsides of the assets.
Throughout 2022, investors have wondered when the next crypto bull run will occur and what will cause it. Can there be a specific event, situation, or circumstance that will trigger a market cap movement, causing it to go back over a trillion dollars to more than three trillion dollars? Answers to that question are necessary.
Is there a reason why the 2022 bear market occurred?
It is imperative to first review what transpired during this past year in order to identify what may trigger the next bull run. The Terra Luna collapse was the first of two incredibly significant events that occurred. As the popular stablecoin was decoupled from its 1:1 peg to the dollar, a massive windfall effect took place, reducing its value to nothing.
FTX's collapse and bankruptcy was another major event. Although some call it a scandal, investors lost money because the company's leaders mismanaged funds. The most heat was directed at Sam-Bankman Fried as he was the primary source of blame for FTX's mismanagement.
It is unfortunate that these major events declared war on the crypto markets, leaving the crypto community in a desert feeling desperate for water. As well, a number of other events occurred, such as BlockFi declaring bankruptcy, hackers breaking into app protocols in order to steal funds, etc.
Whatever the news is, whether it is good, bad, or indifferent, it plays a significant role in market sentiment.