Users can consider buying VPS at the start of a bitcoin bull market
All signs indicate that the cryptocurrency market is already in the final stages of a bear market. Another bitcoin (BTC) halving is rapidly approaching. Expert comments and market movements suggest that this could trigger another bull market. For this, users can buy a virtual private server (VPS) cheaply to prepare for better crypto prices.
What is a bear market?
The cryptocurrency market has been bearish for some time. The price of bitcoin fell 55% from its all-time high. Investors often want to know when the bear market will end.
Typically, the bull market begins when the asset price rises by 30% from its recent low and stays above that level for over two months. An asset is said to be in a bear market when its price has fallen by more than 20% from its last peak and has been below that price level for more than two months.
Because of the high volatility of cryptocurrencies, the threshold for a bear market is typically considered to be a 30% decline from the previous peak.
A bear market is a time for careful actions and wise acquisition of investment assets whose prices are relatively low. However, bitcoin is not only an investment but also a means of payment. As such, a user can buy VPS using bitcoin or other cryptocurrencies. At the same time, they can use the coin to purchase works of art or outsource business tasks.
For this reason, there are better times to make large purchases than in a bear market Even so, when the price starts to increase, the role of BTC as money increases significantly. It is better to buy VPS with bitcoin when the coin is trading higher.
Historical bear markets in bitcoin
Examining data on the price of bitcoin from 2010, when it was worth a fraction of a dollar, to the present day reveals some interesting patterns.
The current bear market started on March 7, 2022, and has been ongoing for over a year. During this time, the price of bitcoin fell from over $69,000 to as low as $16,000.
However, bitcoin’s current recovery gives hope that the recent bear market will be one of the shortest in history. The bear markets of 2014 and 2018 lasted 630 and 448 days, respectively. On average, the previous three bear markets ended 287 days before Bitcoin halving.
The next halving event will occur in March 2024. Based on these statistics, the bitcoin bear market could end on May 25, 2023. With a few months left until the estimated end of the bear market, it might be a good time to check the hosting market and choose a provider offering the most attractive and cheap VPS deal.
Is bitcoin halving important?
Halving occurs when the amount of cryptocurrencies reaches a certain threshold, and the network reduces miner extraction by 50%. It is automatically executed by the blockchain network’s built-in protocol. In the case of Bitcoin, it occurs roughly every four years.
Analysts say halving will make bitcoin a more stable instrument than fiat currencies. This mechanism also guarantees the stability of the Bitcoin network in the long haul based on supply constraints. In this way, bitcoin mining will be unfeasible. Instead, BTC will be predominantly used as a means of payment where users can buy many products, including hotel stays, top-up mobile phones, or even a cheap VPS.
The inevitable approach of the 2024 halving suggests that we may see a return to the bull market by May 2023. However, is the halving phenomenon still as influential as it was in the past? Or has this narrative lost its impact?
As observed, the effect of halving tends to decrease as the amount of BTC in circulation increases over time. The first halving occurred in 2012, which reduced production by 50% compared to the amount in circulation at that time. The last halving in May 2020 reduced the rate of production by 7.1%.
It is expected that the upcoming halving will reduce BTC production to 656,250 units over the next four years, representing 3.3% of circulating supply.
Is this bear market different?
It seems unlikely that the narrative of halving as a bull market trigger has been exhausted. The second reason is the overall macroeconomic context. For the first time in its history, bitcoin is trending amid a global economic crisis that can trigger a recession.
Additionally, bitcoin has never been so widely used before as a means of payment. Besides being supported by stores and restaurants, hosting companies allow users to purchase VPS using bitcoin.
This endorsement has a positive effect on the stability of the cryptocurrency and helps maintain positive sentiment. In the hope of counteracting skyrocketing consumer price indices worldwide, central banks are raising their key interest rates, encouraging borrowing and money creation.
For years, this liquidity has flowed into financial markets and cryptocurrencies. However, this system is struggling, and money is moving from risky markets.
Bitcoin can no longer be considered a speculative instrument, as it was in the past. It is already a popular means of payment accepted by many industries.
New technology companies such as hosting providers allowing the purchase of cheap VPS using bitcoin, online casinos, or developers of mobile applications, are the leaders in cryptocurrency payments.
Bitcoin is in a better condition
The significant market downturn has cleared all leverage excesses, especially among lending platforms and hedge funds that went bankrupt. The market has been cleansed of its huge risky positions.
Also, unlike in 2018, mainstream companies that entered the cryptocurrency market are not abandoning their projects and have grasped the industry’s promising future. At worst, they only temporarily suspend work while continuing to build products, waiting for a potential bull market revival.
The lower profitability of cryptocurrency miners means fewer enthusiasts are also chasing easy profits. Furthermore, the number of bitcoin mining farms is decreasing due to the inevitability of halving.
In other words, bitcoin is losing its speculative features, strengthening its real value as reflected in the stabilization of prices and the explosion of products and services that can be purchased using the coin.
How to find a VPS provider
To buy VPS with bitcoin, a user must research the hosting market. While many providers, such as Ultahost or Hostinger, accept cryptocurrencies, some only treat them as a means of payment. To take full advantage of the benefits of cryptocurrencies, especially anonymity, a user must find a hosting provider that does not require them to sign a contract.
Fortunately, there are such providers in the market. There, a user can buy VPS with bitcoin without signing contracts and be assured of the quality of the service. Although many hosting providers require contracts and collect customer data, a few modern hosting providers depart from this practice and focus on what is essential.
Unlimited bandwidth, high security, friendly customer service, and professional support are critical features that can, surprisingly, come cheaply. You can easily find and buy dedicated servers with BTC packed with all the necessary features.
The bear market is when the bitcoin price level falls 30% below the last peak and remains below it for over two consecutive months. This period has been ongoing for over a year. Still, both technical and fundamental analyses suggest that it will soon end. Since the price bottomed out at $16,000, the bear market will end when the price remains above $21,000 for two months, forecasted to be around May 25, 2023.
Therefore, making a shopping plan using BTC is worth it as its value increases. A web hosting service is one of the products a user can buy using bitcoin. Presently, many providers accept cryptocurrency payments.
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