Here’re the reasons why a bear market right now is the best time to invest

According to the research from Pantera Capital, Paul Veradittakit, the crypto market has sold off a bit and we may be at the start of a bear market. He claims that this is the best time to invest, “entrepreneurs should raise capital or operate lean/extend the runway for at least 24 months”.

Here’re the tips for surviving a bear market

He made the main points of the study as follows:

  • The bear market is great as companies are focused on building, and entrepreneurs are in it for the right reasons
  • Top talent has come into and continues to come into the space
  • This is a great time to invest because of favorable evaluations. Structures include equity, equity-token hybrid, and discounted SAFTs
  • Investors are going to find great value and long-term successful companies during this time

At the moment, liquid cryptocurrencies are bearish right now while private market valuations tend to slow down. Most of the trades in a bull market tend to be token trades, while in a bear market, we will see mostly equity trades, as fewer token projects will be launching. issue tokens due to investor demand for lower-risk assets.

The useful tips that he shares you can refer to are:

  • Raise capital or operate lean/extend the runway for at least 24 months
  • Focus on monetization and business model earlier rather than later, creating exit value
  • Reduce excessive spending; in crypto, you spend less during a bear market on marketing and push more into the next bull market
  • Review service agreements and either cut or re-negotiate
  • Larger companies should be active in looking for acquisition targets

At 44.8%, Bitcoin’s share of the overall cryptocurrency market cap was highest since October 2021 at the time of writing. 60% BTC market dominance would represent a level not seen since March last year. A bear market will have a bull market. Therefore, everyone should calm down and wait for buying the best signals.

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