How Bear Market Mentalities Negatively Affect Cryptocurrency Valuation

by 99Crypto

With each passing day, cryptocurrencies remain stuck in a precarious situation. A deep bear market persists, and the bulls can't break out of the current situation. Cryptocurrency investors continue to react strongly to even the slightest amount of negative news. On the other hand, positive developments barely register in the exchanges. Long-term outlook remains positive for cryptocurrencies in general. A Never Ending Bear Market Has Chilled Cryptocurrencies In the short-term, cryptocurrencies continue to pullback more often than they increase in value. Virtually all major cryptocurrencies remain down in the past 30 days. A respite from the slow bleeding of value doesn't appear on the horizon yet, either. For instance, Bitcoin and Bitcoin Cash are down nearly 20% and 25%, respectively, over the last month. Plenty of other currencies remain down 15-30% on average in that same span. Major and Minor Cryptocurrencies All Remain Down Things don't look better for Ripple or Litecoin at the moment. EOS, Cardano, Stellar, and even IOTA remain deeply in the red in recent times. Currently, no major cryptocurrency can claim good results in the investment market. Cryptocurrencies occasionally jump up a few percentage points only to fall back down within days. In fact, small pullbacks continue to drag prices downward every few weeks. What's Causing The Current Bear Market? Some investors point toward recent hacks and negative press to explain the bear market. Others believe cryptocurrencies are simply correcting themselves from December and January highs. Either way, most analysts and investors see the markets picking back up within the next few months. It remains to be seen whether cryptocurrencies can reach levels not seen in over six months. A major rally to higher values would be welcome. Perhaps cryptocurrencies will start a major rally by the end of the year. Cryptocurrency investors always like to end the year strong after all. In the end, the bear market likely won't remain in place forever. The next few months should signal whether cryptocurrencies have room to grow in valuation, or whether they were overvalued to begin with. For now, the bear market should remain in full effect.