The crypto markets have been really “bearish” over the last ~2 months (to say the least) which has led to a number of changes within the ecosystem. I’ve personally noticed that at least 90% of the people who were around in May/June are now gone (fleeting retail investors that come and go every cycle), sentiment is mostly flat among those who remain, and there is a sense of “shared cope” among people who watched their paper gains evaporate.
You’ve all probably seen the countless memes on Twitter over the last few weeks where people make jokes about the market and by doing so, form a “shared coping” bond to deal with the pain of this current downtrend. Of course, this isn’t unique to crypto - as humans we always try to find ways to console eachother in times of need, but I think with crypto it is done in a greatly accelerated way. For example, within literally minutes of the crypto markets selling off, my Twitter feed is bombarded with people making jokes, giving their hot takes on the market and even people tweeting out that “everything is going to be okay”. Hell, you’d think the world had ended every time the market dumps 5%!
Another thing that I’ve noticed with crypto is the distinctly different groups of people and how they react to market sell-offs. The “OGs” aka those who’ve been around for a cycle or two will simply embrace the volatility since they’ve experienced it all before whereas the newer investors will feel genuinely frightened and are actively looking for reassurance from these “OGs”. This results in an even tighter “shared cope” bond being formed and in some way it starts to look like a “teacher and student” dynamic where the newer people will hang on to what the “OGs” say and even go as far as following these people in a cult-like way.
It’s not all doom and gloom though - Ethereum developments are still progressing at a rapid pace across pretty much all verticals - and why wouldn’t they? It’s not like that just because the market is “bearish” the developers all say “oh well, we better wait for the market to heat up again before we keep building”. No, that’s definitely not the Ethereum way, we build no matter what the market is doing and then we experience the spoils of our work later on - we always play long-term games and we always build with foresight.
In the end, it doesn’t matter what any of us think about the markets, we’re all just making guesses based on our own inherent biases (the applies to both bulls and bears equally). In my humble opinion, the best kinds of things happen in bear markets because there is less noise, more focus on fundamentals and it’s much easier to build a name for yourself (if that’s something you’re interested in doing, of course).
Have a great day everyone,
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All information presented above is for educational purposes only and should not be taken as investment advice.