Bitcoin and the general cryptocurrency market have been experiencing one of the essential moments since 2018, wiping more than $1 trillion in market worth since early 2022.

The present disaster has triggered a wave of panic locally, with Bitcoin  (BTC) miners’ selling activity surging to seven-month highs as mining profitability has dropped to October 2020 ranges.

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The Bitcoin Worry & Greed Index has posted the lowest number since the pre-pandemic times of Q3 2019, dropping to 7 and indicating “Excessive Worry” on Wednesday.

These and different latest occasions within the business don’t look good — however solely at first look, in accordance with some business consultants and executives.

Individuals within the business proceed to reiterate that bear markets are actually good for Bitcoin and wholesome for the crypto business, as they take away speculators and scams whereas offering house to construct actual and nice services and products.

“The present state of affairs is sweet for Bitcoin in the long run, cleaning the market from leverage, scams and dishonest establishments,” Trezor Bitcoin analyst Josef Tětek informed Cointelegraph.

In accordance with Tětek, earlier bear markets spawned many pivotal tasks, together with the Lightning Network, a significant Bitcoin-related undertaking enabling cheaper, sooner Bitcoin transactions. The preliminary idea of the Lightning Community was formulated throughout the bear market of 2015.

Crypto winters and bear markets present extra alternatives to construct, as hypothesis leaves the market, Tětek famous, stating:

“Bear markets are good for Bitcoin. Builders face fewer distractions, and the faux ‘undertaking founders’ that have been solely on the lookout for a fast VC funding and naive retail exit liquidity disappear as shortly as they beforehand appeared. Actual builders rejoice when all of the bullshit will get washed out.”

The crypto market must undergo crypto winters with a view to develop and mature, Bitcoin Suisse CEO Dirk Klee informed Cointelegraph. In accordance with the manager, the standard, stability and safety of crypto providers and merchandise grow to be much more vital throughout unsure market circumstances. He mentioned:

“Finally, that’s what the business wants with a view to mature additional, and we intention to dwell as much as these requirements each single day.”

In an identical solution to broader markets, Bitcoin and all the cryptocurrency ecosystem have traditionally advanced in cycles, with many crypto observers arguing that Bitcoin has “by no means traded under earlier cycle peak.”

In accordance with Kraken CEO Jesse Powell, Bitcoin worth cycles are based mostly “form of across the Bitcoin halving,” a one-in-four-years event that reduces the Bitcoin block reward by half, which has traditionally elevated Bitcoin’s demand and eventually led to bull markets.

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Powell is thought for precisely predicting the crypto winter of 2022. His earlier prediction that Bitcoin would hit $100,000 by the tip of 2021 failed, nevertheless.