We've been in a bear market for a little over a year now, and it has SUCKED BADLY. Almost nothing is pumping and Ethereum, after the "merge" has decided to merge its price with hell's floor, pretty much free-falling since then So much for the "merge narrative".

Threw in LUNA for good measure because why not?

But what caused this horrible bear market?

Let's take a step back to check what actually causes bear markets in the first place. INTEREST RATES.

You might not want to accept this, but the real world controls our little crypto world here. Interest rate spikes will take capital out of all markets. And that's exactly what has been happening for over a year now. The Fed has been slowly increasing interest rates, leading to a reduction in the amount of capital in the markets, because no one wants to pay the higher rates, so no one is borrowing. (by "no one", I imply a lesser number of people).

In addition, all the cash flow was directed towards Federal reserve treasury securities, with a whopping 2 Trillion (with a "T") dollars worth of these securities being sold by the Fed. That explains where all our liquidity has been.

In addition, most institutions took a more "risk off" approach towards the market, which caused over-dramatic sell-offs throughout the ENTIRE market, with stocks, crypto and even precious metals taking a bad beating.

Big daddy inflation also didn't help the cause at all, since cash is king and we pretty much can't do without it.

I can go on and on about why we're having a shit market, but the point (and reason) should be crystal clear by now. There's simply no capital in the market to "pump the stock". 

So when will the brunt be over?

Good question friend. The bear market should magically go away on its own once the Fed stops raising interest rates. They're doing this, I believe, to curb inflation, so once that's done, we should see magical rallies all over the place.

The TL;DR is simple: When the feds announce an interest rate drop (the last two announcements were increases of 0.75% each, so perhaps if we see a drop to 0.5%, hopefully, that should do it), we should be able to at least hope for a market-wide relief as everyone tries to catch the "bottom".

Until then, it's goblin town for everyone. 

What do you think about this topic? Can you wait for the bull to return? Let me know your thoughts down below!