“We are in a bear market” says Web3 Foundation Executive Director

Currently, the crypto market is in a bearish scenario that, during the last few months, has led the price of Bitcoin to fall below 28,000 USD. This has generated uncertainty among buyers and investors, but for the top executives of the industry it does not seem to be a situation to be alarmed. Rather, they believe that it is a necessary action to get rid of dubious projects.

Is the crypto winter finally here?

In a recent interview with Bertrand Perez (Executive Director of the Web3 Foundation) the fall of the cryptocurrency market was discussed with a group of industry entrepreneurs. In his opinion, the market crash is happening due to the sell-off in stocks, such as the NASDAQ and S&P 500, and the collapse of the UST stablecoin.

Perez expressed:

"We're in a bear market. And I think that's good. It's good, because you're going to take out people who were there for the wrong reasons."

Bertrand also pointed out that bull markets lower the productivity of projects. Everyone has their eyes on making a fortune, which is completely wrong. If you invest for pure euphoria, with the idea of becoming a millionaire overnight, you can make a serious mistake.

A Bear market is also necessary

The Bitcoin and Ethereum sell-off was triggered by a much broader drop in the stock markets. In particular, the technological market. The decline was made worse by the crash of the dollar-pegged stablecoin TerraUSD (UST).

Mihailo Bjelic, co-founder of the Polygon company commented:

"The market, in my personal opinion, got maybe a little bit irrational, or maybe a little bit reckless to a degree. And when times like this come around, a correction is usually needed, and at the end of the day it's healthy."

As difficult as these times are, it must be recognized that these periods are the opportunity to enter the market for many. For a cycle to start, the previous one must end. Coming from a bull market last year, it was only natural for this to happen.