Cardano Founder Thinks Crypto is in Bear Market

Today, Cardano founder and Ethereum co-founder Charles Hoskinson confirmed his views that cryptocurrencies are in a bear market albeit in a much more adulterous way.

Replying to a comment on his tweet, Charles Hoskinson, the Cardano founder and the co-founder of Ethereum noted that cryptocurrencies are in a bear market.

Bear Market

A bear market is a situation where the prices of commodities(here crypto) keep falling and there are no signs of recovery. This usually happens after a rally in prices that push the traded value much higher than the actual value.

Let us analyze the most popular cryptocurrency: Bitcoin

Since Nov 2021 highs, most cryptocurrency values have declined over half of their all-time highs. Bitcoin reached an all-time high of $68,906 in the second week of November. According to popular consensus, a bear market is validated when prices fall down more than 20% from the current highs(47,450 on 29 March 2022) to the current value of $33080 as of 09 May 2022. This is a fall of 30% and hence a generally agreed bear market.

The Backdrop

Currently, the crypto markets are in a slump after prices rose following US Sanctions on Russia. Businesses in Russia could not get foreign exchange and resorted to crypto. Late, this rally fizzled out because it became widely known that crypto could not support Russian foreign exchange needs. Further, European countries began to pay for Russian oil in Euro and Roubles.