The end of crypto bear market is imminent, according to Zhao Dong—a renowned over-the-counter (OTC) trader who also happens to be one of the most influential bitcoin billionaires in China. The billionaire recently stated that he was convinced that the bear market would soon end.
Dong, who is also a major shareholder at Bitfinex crypto exchange and the founder of RenrenBit, a crypto lending platform, aired these sentiments on Weibo (the Chinese version of Twitter). His posts were meant to give the public his predictions of the crypto market for the next three months.
“The next three months could be the last opportunity for bottom fishers, and after that, the crypto market will enter Spring and then Summer, estimated to rally together with China’s stock market in 2021. There’s always ups and downs, just like the cycle of the seasons.”
Crypto Market Seasons
The tycoon went on to say that the crypto market has its ups and downs, which can be compared to the various cycles of the seasons. In November last year, the Bitcoin tycoon had advanced a theory that the BTC market comprised of four seasons.
At the time, he claimed for the first time that the market was currently in its autumn season, stating that 2019 would serve as its winter season. Bitcoin would then go on to surprise many of its investors by tripling its prices within a span of three months.
It rose from $4,000 at the beginning of April 2019 to $13,000 by mid-June. This was at a time when the market completely failed to capitalize on its bullish run and instead continued to hover around the $10,000 mark for a period of at least two months.
Expected Price Drop
Zhao stated that there was a possibility that the leading crypto would soon experience a big drop in its prices in the coming three months. He estimated this would happen before the start of 2020.
For many in the crypto industry, Zhao is more than a legend. These are sentiments expressed by many crypto enthusiasts who have come to learn of his experiences in this industry. He entered into the crypto market with an initial investment of 10,000,000 yuan in 2013.
Within no time, his investment had multiplied tenfold, despite the fact that the crypto had experienced a major slump that year. His misjudgment and over-optimism caused him to open accounts that were heavily leveraged.
This time around, he ended up losing more than 9,000 BTC in a single trading day. That was in February 2014. While he once thought of killing himself due to this huge debt, he was able to repay the entire debt in less than three years.