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That's on top of the high fees associated with the investments. Secondly, they're also illiquid because they charge penalties to get out early. That makes it difficult to price them, so it's hard to gauge their worth. Firstly, they are illiquid because there is no active market for them.

While assets such as private equity, hedge funds, real estate and collectibles may be holding up better than the stock market right now, there are some significant trade-offs with owning them. Some financial advisors are pushing alternative investments to counter the stock market's volatility and poor performance. You Don't Know What You're Getting With Alternative Investments For example, at 8% inflation, a CD yielding 2% results is a net loss of 6% on your money. Even as rates on savings accounts and CDs rebound from historic lows, they're still significantly less than the rate of inflation. Sitting in cash and avoiding the stock market chaos may feel better for the moment, but in today's inflationary environment, you are guaranteed to lose money. Those who sat out the 10 best days missed out on 55% gains. According to Fidelity Investments, investors who missed the five best trading days over the past 40 years saw their long-term gains reduced by 38%. In that case, you are likely to miss the biggest gains, further hampering your ability to recoup your losses and hurting your long-term investment performance. However, it is commonly accepted that we are currently advancing through the fourth crypto bear market.Secondly, suppose you are sitting on the sidelines to avoid the worst days of the stock market. Moreover, cycles within cycles and price corrections (e.g., the sharp drop in May 2021) blur boundaries further, leading to every report giving slightly different bear market periods. Bear markets lack a strict definition and are described as prolonged price declines.Billionaire Mark Cuban and Ethereum’s creator Vitalik Buterin welcome bear markets as a Darwinian mechanism to thin out weak assets. Bear sentiment benefits the market’s health.Bear markets often breed fear, with clickbait-style news pronouncing Bitcoin ‘dead’ 35 times a year on average and Google searches such as ‘Bitcoin is dead’ booming.It is possible that 2024’s halving may follow the same pattern. In 2018, Bitcoin peaked at around US$20,000 and fell to US$4,000, but its pre-halving value was about US$600. Halvings seem to cause price surges and drops without erasing gains.We are advancing through the fourth largest drawdown in Bitcoin’s history, reaching -71.0%, while previous drawdowns have reached up to -86.9%.

However, there is no consensus on their length, and different reports suggest that they may become shorter or longer.