Fermin Araujo MzDh

#MarketPullback — Crypto’s Bear Market Faces Unprecedented Economic Headwinds The current downturn in crypto isn’t just another cycle of highs and lows — it’s digging in under broader economic stress that could make this bear phase particularly deep. What’s Driving the Risk The International Monetary Fund (IMF) warns that global assets face a “disorderly correction” due to weak growth, trade shocks and heavily valued risk assets. Research shows crypto’s bear phases are amplified when traditional credit dynamics tighten and liquidity shrinks. Analysts argue the next crypto slump may align with a full-blown economic business cycle downturn — similar to 2001 or 2008 — rather than just crypto-specific triggers. What to Watch Liquidity withdrawal: If central banks keep tightening and money supply shrinks, crypto liquidity may dry up fast. Credit stress: Collateral-based borrowing in crypto (lending, leverage) may collapse first when economies contract. Risk sentiment flip: As risk assets rotate out, crypto could suffer more before any recovery begins. Cycle bottom timing: Bear markets tied to economic downturns often last longer and require stronger macro recovery to reverse. My Take If this bear phase ties into a broader economic slump, then the “reset” for crypto might be larger than usual. That means: Short-term trades need tight discipline. Long-term holders should expect longer wait times for recovery. New accumulation zones should factor in macro textbooks, not just crypto charts. Stay cautious and watch for early signs of stabilization — because when this cycle turns, it may set the stage for the next structural move.