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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 id:: 62a785e5-4365-4810-b52a-76e8b0b3ebb4