Bitcoin whale: crypto bear market could last for a few more years

After seeing a drop of $61 billion, the crypto market may face years of a bear market, warns a Bitfinex whale.

After failing to test a major resistance level for Bitcoin at $10,500, the crypto market saw a significant pullback in a short time frame.

Whales like Joe007, one of the biggest Bitcoin traders on Bitfinex, have long warned traders against such a reaction to the downside, given the lack of organic demand and fiat inflow to support the Bitcoin upsurge in February.

Long-term holders of Bitcoin are anticipating the crypto market to enter a correctional phase before another extended rally because it would provide the market with a stronger foundation to recover from.

A long accumulation phase, which the crypto market did not get with the recent rally, allows both retail traders and institutions to drive a stable fiat inflow into the market.

Bitcoin depends on the supply and demand in the market primarily for its value.

Eventually, as the Bitcoin price recovers with a solid foundation, it will lead to the outflow of BTC to alternative cryptocurrencies, leading a comprehensive crypto market upsurge.

Another key fundamental factor for BTC and the crypto market as a whole is the emergence of strictly-regulated trading platforms and custodians.

In the U.S., in particular, both accredited and retail investors a wide range of selections for exchanges and custodians, such as Coinbase, Gemini, CME, Bakkt, and LedgerX. The diversity of trading platforms provide more competition in the crypto market, and encourage companies within the market to improve to provide an edge over its competitors.

In previous bull markets, one of the major issues was the lack of reputable and trusted liquidity providers.