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.
- Bitcoin Price Recovers Above $30,000; Most Altcoins Are In The Green
- Bitcoin And Ethereum Continue To Trade Almost In Tandem With The Largest US Stock Market Indexes