Jason Yanowitz, co-founder of Blockworks, identified the three stages of a bear market and said we were at stage two, experiencing dramatic price falls. The market will only get stagnant and depressing before it picks up again, and those who don't quit will be rewarded.
He said that the community should remember why they started and be resilient at times like this.
In 2018, Yanowitz's description of the three stages of the bear market relies on a blog post written by Fred Wilson, co-founder of Union Square Ventures.
Yanowitz described the first stage as the unwind, where the market doesn't feel bearish. High levels of greed still hold on from the previous bull sentiment, assets remain above their support and companies are doing okay. Everything seems normal in the first stage.
Stage 2 is where bearish signs start showing themselves brutally. The excitement of the first stage turns into anger.
At this stage, prices fall dramatically and cryptanalysts begin the age-old chant of I told you so. The sentiment is very negative and very negative. The investors will choose to sell out at the smallest price peaks.
The companies have to take measures to survive, such as reducing their size. It is very hard for those who rely on token for funding to have a hard time.
He said that the market entered stage two after the LUNA crash.
Stage 3 is when the market becomes lifeless. Yanowitz warned of the depressing stagnancy of stage three and advised to be resilient. He reminded the community that they are early adopters, and it will take decades before the new world is settled. There must be a winter for the community.
He finished his thread with a list of reading material that he recommends every crypto enthusiast to re-visit at every opportunity.