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Theme: 3 Phases of a NFT Bear Market

  1. Dump: In this phase, the market experiences a rapid sell-off and prices for NFTs drop significantly. Investors who bought NFTs at high prices are eager to get out and reduce their losses, leading to a glut of NFTs on the market.
  2. Capitulation: In this phase, the market reaches its lowest point, and the majority of investors have lost faith in the market. This is when the market is considered to be the most oversold and investors who remain are the most risk-tolerant.
  3. Bottoming Out: In this phase, the market starts to show signs of stability and prices begin to level off. Investors who have been waiting on the sidelines start to enter the market and take advantage of the low prices, marking the start of the next bull market.

 

The NFT bear market can be compared to the bear markets of traditional assets such as stocks, bonds, and commodities. A bear market is characterized by a sustained downward trend in asset prices, often caused by economic, political, or market-specific events. Just like in other asset classes, a bear market in NFTs is a normal and expected part of the market cycle and provides an opportunity for investors to buy low and potentially sell high in the future.


NFT bear market coming to an end can include:

  1. Stabilizing prices: The downward trend in NFT prices starts to level off, and prices begin to hold steady or even increase slightly.
  2. Increased buying activity: There is a noticeable increase in buying activity, indicating that investors are starting to regain confidence in the market.
  3. Increased demand for NFTs: There is an increase in demand for NFTs, especially for high-quality, unique, and rare NFTs, which can drive up prices.
  4. Positive news and developments: Positive news and developments in the NFT market, such as new partnerships, collaborations, and projects, can help to revive investor confidence and drive up prices.
  5. Bottom fishing: Investors start to take advantage of the low prices to buy NFTs that have been oversold, which can help to drive up prices and mark the end of the bear market.
  6. Someone buys Ponderware - mooncats to the moon :P 

 

Note: These are general signs and market conditions can vary, so it's important to do your own research and stay informed about the NFT market.

 

YTD 

 

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