The crypto market crosses a new phase of low, characterizing a bear market, marked by expressive falls driven by saleswoman, restrictive macroeconomic policies and regulatory uncertainties. This scenario affects both institutional and retail investors.
Last Monday (10), the Crypto market recorded a significant drop, with Bitcoin operating below $ 80,000. On-chain data indicates increased sales of miners and press the price of the main digital asset.
Experts analyze the elements that support Bear Market and the strategies adopted by investors.
Bitcoin travels for a area of curm
In a recent session of negotiations, the largest cryptocurrencies underwent a retraction. Currently, the value of Bitcoin (BTC) is 28.3% below the peak of US $ 109,114, highlighting a typical increasing sales pressure of a Bear Market. At one point, Bitcoin even operated soon below $ 80,000. This caused him to reach a low of $ 77,393 – the lowest level recorded in four months.
The increase in sales of miners, as shown by on-chain data, contributed to the strengthening of negative feeling in the market. Historically, miners tend to settle part of their participation to cover operating expenses during falling periods. Something that can aggravate low movements.
According to Fábio Plein, coinbase regional director for the Americas, “since the US elections, the crypture sector has benefited from a number of positive factors from various sources, such as policies, macroeconomic and idiosyncratic.” In his analysis, Plein emphasizes that, even with the current retreat, the dynamics of high and low cycles is a recurring feature in the market, allowing investors to position themselves strategically as corrected periods are established.
The current retraction, therefore, does not occur in isolation, but as part of a cycle that includes internal factors of the ecosystem and external economic conditions. The alternation between euphoria and correction phases has been a constant element in the evolution of cryptocurrencies. This reinforces the need for in -depth analysis of the underlying factors.
Global tensions and opportunities in the sector
The influence of restrictive monetary policies and geopolitical tensions has been impacting cryptocurrency performance. According to Pedro Gutiérrez, director Latam from Coinex:
The current Bear Market in the crypto sector is being sustained by a combination of investor macroeconomic, regulatory and behavioral factors, he said in an interview with Beincrypto.
Gutiérrez points out that the squeeze of monetary policies in key economies, such as the United States and Brazil, contributed to the reduction of liquidity in markets and, consequently, to the reduction of risk active appetite.
In his explanation of the global scenario, Coinex’s director points out that “the global macroeconomic scenario has significantly impacted cryptocurrency performance, mainly due to restrictive monetary policies, regulatory uncertainty and geopolitical tensions.” Among the factors mentioned are the interest cuts promoted by the Federal Reserve and Copom measures, which influenced the availability of capital for alternative investments. In addition, the escalation of commercial disputes and the lack of a clear regulatory framework reinforces the caution environment among investors.
These external elements, combined with internal sector events make the market react with longer correction cycles. Gutiérrez also points out that “the effects of previous collapses, such as those of Earth/Luna and FTX, still generate distrust and led to a more reactive market.” Thus, the current environment reflects both the pressures from rigid monetary policies and the impact of regulatory uncertainties that hinder the influx of institutional capital.
Another relevant aspect mentioned by Pedro Gutiérrez concerns the recovery of discharge cycles. He explains that:
Historically, bear markets have been periods of consolidation and strategic accumulation before new discharge cycles.
This perspective indicates that the low scenario has significant challenges. However, it also opens opportunities for long -term vision investors and solid strategies.
Strategies to protect investments
Given the environment of high volatility and uncertainties, experts indicate that investors should prioritize capital preservation and diversification of portfolios. Pedro Gutiérrez recommends that “investment strategies should prioritize the preservation of capital, diversification and effective risk management”. It emphasizes the importance of the gradual investment method, such as Dollar Cost Averaging (DCA), to reduce the impacts of sudden oscillations.
In addition, the use of traditional instruments – such as precious titles and metals – coupled with the maintenance of part of the stablecoins portfolio, can offer an additional protection layer. Gutiérrez also points out that “the use of derivatives, such as options and future, can offer protection against sudden movements, while maintaining a liquidity reserve avoids forced sales in times of panic.” This approach, combined with the fundamentalist analysis of projects, allows investors to make more informed decisions even in an unstable environment.
In the same vein, Guilherme Sacamone, OKX country manager in Brazil, warns of the need for caution, especially among smaller investors.
Volatility can be particularly intimidating for new investors. Researching and obtaining a deep understanding of the asset in which you are investing is essential to maximize gains and minimize losses, even in the face of the most extreme fluctuations on the market, he said in an interview with beincrypto.
Sacamone reinforces the importance of education and access to tools that assist in decision making in any market condition. Thus, highlighting the relevance of a detailed analysis of the historical behavior of the assets.
Impact of AI and Blockchain on the sector
As for technological innovations, both Pedro Gutiérrez and Guilherme Sacamone point out trends that can influence the recovery of the sector. Gutiérrez notes that “Artificial Intelligence (IA) is emerging as one of the main driving forces in the recovery of the crypto sector, transforming both operational efficiency and decision making in the ecosystem.” He mentions that the combination of AI and blockchain is optimizing processes. From data analysis to the automation of investment strategies, which can contribute to reducing the volatility caused by emotional factors.
In turn, Sacamone points out that “the crypto market is constantly evolving, and what has brought it here will not necessarily be what will support it in the future.” According to him, the sector is undergoing increasing integration with traditional finances. Banks adopt digital assets and blockchain technology improving the safety and efficiency of transactions. He also emphasizes that “regulatory clarity is a crucial factor”, pointing to the scenario of innovations and the need for regulatory frameworks that may offer greater predictability to investors.
The convergence between technological advances and changes in the regulatory environment suggests a long -term scenario where the market can find stability. However, both experts underline the importance of protection strategies to deal with periods of prolonged instability. Gutiérrez reinforces the diversification and use of protective instruments. Meanwhile, Sacamone concludes that “the best protection is to understand well where you are investing and always keep up to the market.”
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