Regulators May Ease Bearish Pressure
Well-known crypto lawyer Jake Cherwinski, commenting on the situation in the cryptocurrency market, believes that a bear market could lead to a weakening of regulation. This will happen, because along with the fall in the value of bitcoin, the risk of cryptocurrency projects may decrease.
A bear market attracts fewer retail participants, minimizing overall risk and reducing the need for government intervention. This will allow the crypto sector to breathe more freely for a while, and this is already good.
According to Chervinski, the situation in 2022 is different from that at the end of 2017. In 2021, the value of cryptocurrencies set a new all-time high, there were many scams, frauds, exchange hacks, and regulators did not disregard this.
Considering also external factors - the growth of geopolitical tension, instability due to covid, the authorities no longer seek to consistently regulate the cryptosphere, but suppress it.
Therefore, the fall of total control can be one of the advantages of a bear market. This could support the progress of cryptocurrencies in the long term.