Bitcoin’s in a bear market, but there are plenty of good reasons to keep investing

cointelegraph.com:

Let's rewind the tape to the end of 2021 when Bitcoin (BTC) was trading near $47,000, which at the time was 32% lower than the all-time high. During that time, the tech-heavy Nasdaq stock market index held 15,650 points, just 3% below its highest ever mark.

Comparing the Nasdaq's 75% gain between 2021 and 2022 to Bitcoin's 544% positive move, one could assume that an eventual correction caused by macroeconomic tensions or a major crisis, would lead to Bitcoin’s price being disproportionately impacted than stocks.

Eventually, these “macroeconomic tensions and crises” did occur and Bitcoin price plunging another 57% to $20,250. This shouldn’t be a surprise given that the Nasdaq is down 24.4% as of Sept. 2. Investors also must factor in that the index’s historical 120-day volatility is 40% annualized, versus Bitcoin's 72%, which is roughly 80% higher.

That’s the core reason why investors should re-evaluate investing in Bitcoin. The risk-to-reward potential after the downward adjustment in risk assets possibly leaves more upside for the cryptocurrency considering three factors: higher volatility during a moderate recovery, equity offerings and resistance to regulatory sanctions.

The problem is the market is now in a drawn-out bear trend and there are no signs that point to a quick recovery because double-digit inflation in many countries continues to pressure the central banks to sustain a tighter stance. Notice below how both Bitcoin and the Nasdaq have struggled throughout 2022.

The consequence of raising interest rates and removing debt assets stabilization programs is a recession-like environment. Whether or not a soft landing will be achieved is irrelevant because no sane investor will opt for credit-exposed and growth