The cryptocurrency market is undergoing the largest sell-off since the pandemic, but experts believe that the bull market is still ongoing and we have not entered a bear market.
In the last 30 days, about 1 trillion USD has flowed out of the market, causing panic.
Analysts compare the current situation to the declines in 2020, suggesting that it is more of a correction than the beginning of a prolonged bear market.
Experts: the market resembles 2020, not 2021
Although declines dominate, analysts remain optimistic. "We will break through the largest wall of fears in the history of cryptocurrencies," wrote analyst Sykodelic.
Michaël van de Poppe noted similarities to the March 2020 crash, when BTC lost over 50%, and by the end of the year set a new ATH.
Another expert, Altcoin Alf, points to the dominance of Tether (USDT) as a signal of capital rotation towards cryptocurrencies.
Additionally, the quantitative tightening process ends on December 1, and a rate cut is expected in December, creating almost ideal conditions for the market.
In summary: despite the sell-off, the fundamentals of the market and macroeconomic support suggest that the bull market may continue, and the current declines are a natural correction within a healthy market cycle.
