2022 Market Crash

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title:: 2022 Market Crash
  - TODO crate a category Life World Events
- People Discovered
- @Michael Saylor
- @Peter Schiff
- Quotes
- Block Reference
- Bear Market
- Sources(s)
  - {{tweet https://twitter.com/jasonyanowitz/status/1536365738906202112?s=21&t=KHCBjqmJGecrR93OPCIxUQ}}
  - The three stages of bear market
			  collapsed:: true
    - Stage 1: The Unwind
    - The excitement (and greed) from the bull market still exists.
    - Mini-narratives pop up for weeks at a time. Assets still have floors. Valuations are cut but companies don't make the tough decisions (kill products, layoffs).
    - Things seem alright.
    - Stage 1 **doesn't ==feel== like a bear market**.
    - It feels like prices have pulled back to "realistic" valuations.
    - Investors continue allocating, builders keep building...
    - In general, life is good. Only the weak hands sell.
    - Stage 2: Forced Capitulation
    - This is where it gets ugly.
    - Narratives die. Prices fall 90%... then another 90%. Layoffs across the board.
    - Mainstream media and cynics rise up in Stage 2. They laugh and shout ==**"I told you!"**==
    - In Stage 2, diamond hands become forced sellers. They sell not because they want to, but because they have to.
    - In Stage 2, any bounce will be immediately sold into.
    - TODO The dead cat bounce.
      - meaning?
    - Companies that needs high token prices will be crushed. Founders that buy their own tokens to sustain their projects… they'll also get crushed.
    - **In Stage 2, prices crash violently**. Excitement is replaced by anger.
    - The lower prices go, the louder the bears get.
    - The louder the bears, the lower the price go.
    - This creates a vicious cycle.
    - Stage 3: Bottomless Exhaustion
    - After max pain comes max exhaustion.
    - There are no bounces. There are no narratives. Prices consolidate sideways or slowly move down. It's boring.
    - At the bottoms, **anger is replaced by silence.**
    - During Stage 3, you'll want to walk away. **Regulators will kick us while we're down.** Your favorite Twitter degens will go quiet. Web2 investors will quietly stop allocating. Talented builders will leave. Companies will shut down. **You'll question every assumption you had.**
    - Stage 3 is the toughest to survive. If you're a company, do whatever it takes to get through. **If you're a builder, stay interested.** Find other builders. Build with them. If you're an investor, develop your own theses. Take bets on people you believe in.
    - Don't lose sight of the big picture. We're building an open, permissionless world. It will take decades, not years. Close the computer, zoom out, go for a walk. Just don't give up.
    - - [What Bear Markets Look Like]( https://avc.com/2018/11/what-bear-markets-look-like/)
  - The thing to look for in the downturn is signs of life
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