Bull Market or Bear Market: what does it mean for Crypto Casinos?Published January 13, 2022 by Sol FH
When the bulls are on parade, crypto is pumping. But, what happens to your tokens when the Bear hibernates?
You may have heard the terms Bull Market or Bear Market to describe the economy. These terms have become even more popular among cryptocurrency adopters, as social media influencers frequently use them. Before getting into the implications of what a Bull or a Bear Market means for Crypto Casinos, let's take a look at what these market trends mean.
A Bull Market is defined as when the economy is expanding or growing up and to the right, typically relating to the stock market(s) gaining value.
A Bear Market is a shrinking economy. Usually, a tough time when the economy suffers and value losses are imminent.
Hopefully, that clears it up a little bit...But, why is this important for Crypto iGaming, and how does it affect Crypto Casinos and their players?
Well, Crypto Casinos allow players to play casino games that are wagered upon using cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and other tokens and alt-coins. These tokens' value changes every second of every day, 365 days a year, and they never stop because they are decentralized assets that do not close for weekends or holidays.
What's it Worth?
Let's say you are lucky enough to have 5 BTC to wager with. First of all, at the time of this article, that would be worth $219,610, so congratulations. The thing is, by the time this article is complete, that value will have changed and continue to do so, making your asset more valuable or, in some cases, less valuable.
When the economy is in a Bear Market, Cryptocurrency will be down. So those same 5 BTC that you're holding could lose anywhere from 20%-80% of its worth. Your $219,610 could be less than $50k. On the other hand, during a Bull Market, cryptocurrencies thrive, and most parabolic gains are made.
For example, in November/December 2017, one of the wildest rides any financial market has ever experienced occurred. The price of bitcoin rose from $9,600 to $16,500. On December 7, overnight, its price jumped from $16K to nearly $20K.
BTCs all-time high was $64,800, reached on April 14, 2021. Now, the price currently sits at $43,992, as everyone in the market waits to see if the Bulls will keep running or the Bears will rest.
Winning a jackpot at a crypto casino may be worth $10,000 in BTC on the day that you won. But, days, weeks, or months later, that could be worth many times more, making these casinos even more attractive.