How to Navigate a Crypto Slowdown and Succeed as a Business

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Anyone with a passing knowledge of cryptocurrency will know that the market has been falling since November 2021. Ever since Bitcoin hit $69,000 back then, the market has lost value almost every week, losing 75% of its market cap in the 12 months since the high point of 2021. That may sound drastic, but it actually fits a typical crypto bear market – the 2018 bear market saw market cap drop 87% in one year, so this time it’s actually an improvement – ​​so far. However, downturns also present great opportunities, both for crypto investors and those running crypto projects, which this article will discuss.

Crypto Slowdown Affects All Sectors

Many people attribute the downturn in crypto to the collapse of FTX, but that only happened in early November this year, a year after Bitcoin’s all-time high of $69,000. What followed was a typical price reversal, as we have seen after the end of every market cycle. The collapses of companies like Terra, Celsius, Three Arrows Capital, and then FTX only exacerbated the impact of the bear market, potentially driving the crypto market valuation back to its usual level, but faster.

It’s not just the crypto market that has suffered over the past year – the NFT market has taken a beating as well. Many top collections, such as Bored Ape Yacht Club, are down 50% from their 2021 highs, while daily sales numbers have also halved since NFTs hit the headlines.

How can you benefit from it?

So how can you and your project make the most of a crypto crash? The first is to use the time to rethink your marketing plan. Crypto winters are usually when quality projects do most of their building, not to mention distracting from the price action. This quiet time is a great time to rethink your marketing plan, especially given the opportunities a bear market presents – if you know where to find them.

A crypto downturn is a time when many companies tend to backtrack when it comes to marketing, which means there’s less competition and more chance that your advertising will stand out from the crowd. You can try doing this on your own, but using the expertise of a company like Bitmedia, which helps crypto firms navigate multiple bear markets, is your best bet for pushing your budget forward.

If you choose to go it alone, you’ll be pleased to know that most outlets that run crypto ads get discounts during bear markets, so take the opportunity to really get your name out there with some clever banner ads.

Crypto banner ads are a valuable tool for crypto businesses and blockchain startups, and help increase visibility, boost engagement and conversions, and connect with a larger, more interested audience.

Keep in mind that crypto influencers are also continuing to ride through a bear market, likely driving their prices down following a crypto market downturn, so this is definitely something worth exploring too.

There is a very good reason why you need to make sure you have a clear strategy in place for advertising during a bear market – projects that continue to promote during fallow periods come out of the crypto winter with their reputations boosted. . Companies that advertise during a crypto downturn and continue to do so in a bear market will be recognized as serious players who can manage their resources effectively, which will position them well for the next cycle.

Crypto Slowdown May Benefit Crypto

If you’re invested in cryptocurrencies on the side, a bear market is rarely a fun place unless you manage to sell somewhere near the top. Crypto downturns are an opportunity to assess your investing style (did you hold out too long, did you trade too much) and identify trends you want to change for the next cycle. As a general rule, thinking long-term is usually much more effective than thinking short-term – the crypto market cycle takes years to unfold, so if you’re thinking about what to do now, have a deadline years rather than months or weeks.

There is also a clear upside for the crypto space experiencing the kind of downturn it is experiencing, especially with Celsius and FTX falling. These platforms rely on credit or leveraged trading, areas of the crypto space that are unsuitable for the vast majority of crypto investors. The collapse of these platforms will allow the space to get rid of some of these dangerous practices and reduce the risks faced by novice investors.

The slowdown will also allow investors to focus on the merits of cryptocurrencies rather than their short-term price action. Crypto winter will allow projects with utility tokens such as Ethereum, Cardano, and Solana to solidify their use cases, ensuring they emerge from the market downturn with a fuller argument for why their tokens should be used rather than coins to be speculated on.

According to Bitmedia CEO Tanya Petrusenko, these types of projects will be the ones that drive the new wave of crypto adoption:

In this sense, they facilitate decentralized financial transactions (DeFi), allow non-fungible tokens (NFTs) to have value, and are ultimately the currency of new Metaverse applications. They are the future. The good news is that we can start to see these tokens as sources of value and not as literal cryptocurrencies.

Tanya Petrusenko, CEO of BitMedia

Petrusenko also believes that the current crypto landscape is where the dotcom bubble was in 2001, where speculation about unproven business models had come and gone and where real business models that had the internet as their core might finally come to the surface.

Crypto Brands Need to Focus on Utility

When it comes to how advertisers and marketers should handle the crypto winter, they should focus on utility first and foremost. Encouraging speculation, whether by making it part of the protocol or advertising it in this way, only breeds distrust – a distrust that is hard to reverse.

The crypto winter will fundamentally change the way crypto projects will trade for the foreseeable months and years. Ultimately, crypto brands will need to advertise more like the institutions they seek to replace, with savvy, tailored advertising that maximizes their budget.

Those who can master the bear market will be the ones to come out of it with their reputation enhanced, but in this respect it’s like trading cryptocurrencies – in a bull market, anyone can get lucky and consider themselves a genius, but a crypto winter is where the real winners are made. This is where Bitmedias experience can play a huge role – our targeted campaigns can help you become a winner in the bear market, without having to go through the painful learning process, and potentially wasting your valuable ongoing marketing budget. of road.

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