The crisis has triggered a wave of panic in the community, with the Bitcoin miners’ selling activity surging to seven-month highs as the BTC mining profitability has dropped to October 2020 levels.
Bitcoin’s Fear and Greed Index fell posted the lowest records since pre-pandemic times in Q3 2019, dropping to seven and indicating “Extreme Fear” on June 15.
These and other recent events in the industry do not look good, but only at first glance, according to some industry experts and executives.
People in the industry continue to reiterate that bear markets are actually good for Bitcoin and healthy for the crypto industry as they remove speculators and scams, while providing space to build real and great products and services.
“The current situation is good for Bitcoin in the long term, cleansing the market from leverage, scams and dishonest institutions,” Trezor Bitcoin analyst Josef Tětek told Cointelegraph.
According to Tětek, previous bear markets have spawned many pivotal projects, including the Lightning Network, a major Bitcoin-related project enabling cheaper and faster Bitcoin transactions. The initial concept of the Lightning Network was formulated during the bear market of 2015.
Crypto winters or bear markets provide more opportunities to build as speculation leaves the market, Tětek noted, stating:
Bitcoin (BTC) and the overall cryptocurrency market have been experiencing one of its most critical moments since 2018, wiping more than $1 trillion in market value since early 2022.
“Bear markets are good for Bitcoin. Builders face less distractions and the fake “project founders” that were only looking for a quick VC funding and a naive retail exit liquidity disappear as quickly as they previously appeared. Real builders rejoice when all the bullshit gets washed out.”
The crypto market needs to go through crypto winters in order to grow and mature, Bitcoin Suisse CEO Dirk Klee told Cointelegraph. According to the executive, quality, stability and security of crypto services and products become even more important during uncertain market conditions. He said:
“Ultimately, that is what the…..