Arkham’s six strategies for profiting in a crypto bear market

Crypto bear markets are often far deeper than traditional equity downturns, with declines of 70–90% common versus about 20% in stocks. Arkham Intelligence says these stretches feature lower highs and lower lows, falling trading volumes and reduced liquidity, and that disciplined risk management and emotional control are critical to navigating them.

The firm outlines six approaches traders can use. Short selling lets participants profit from falling prices by borrowing and selling an asset then repurchasing it later, but potential losses are uncapped so position sizing and stop-losses are essential. Put options and inverse products offer downside exposure with capped losses; put holders can sell at a strike price before expiration, while inverse products move opposite the underlying asset, sometimes via daily inverse ETFs.

Range trading aims to buy near support and sell near resistance, but works best in sideways conditions and can break down during aggressive selloffs. Other tactics focus on longer horizons or defensive income.

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