Bear Market Investment Guide

I Overall Economic Analysis

According to data, the annual growth rate of consumer price index (CPI) in the United States rose to 8.5% in March, breaking 8% for the first time and marking the biggest increase since December 1981. In order to curb inflation, which has risen to a 40 year high, the Federal Reserve of the United States has adopted the most radical policy of raising interest rates in 22 years. Earlier, on May 4, it announced that the interest rate would be raised by 50 basis points, raising the target range of the federal funds interest rate to 0.75% ~ 1%, representing the largest increase since 2000. This has dealt a great blow to the overall financial market in the near future. The US stock market fell for seven consecutive weeks, setting a record. Economists also analyzed that the recent price correction is only the illusion of a bear market rebound, and the market has not actually hit the bottom.


The virtual currency market is highly correlated with the US stock market, and is also vulnerable to price fluctuations due to the impact of the overall environmental trend. After the US interest rate hike hit the crypto market hard, UST depegging caused the market price to fall together with LUNA. On May 24, Bitcoin fell for eight consecutive weeks, representing the longest record in history.


Federal Reserve Chairman Paul said on the 17th that the Fed would continue to push for tightening monetary policy until inflation fell significantly. He stressed that the US government would continue to support interest rate hikes until prices began to fall back to the moderately rising inflation rate (between 1%~3% or an average of approximately 2%). The monetary tightening policy will cause market funds to flow back to the central bank, leading to a decline in investment enthusiasm and the overall economic recession. It can be seen that the bear market may continue, leading to bearishness and panic in the crypto space. At this time, appropriate financial instruments can avoid the loss of the bear market. Like Gate.io's Shark Fin Products can save the principal even in the bearish market, and provide potential annualized revenue as high as 30%.

II Shark Fin Products

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Shark fins are principal-guaranteed investment products. It is suitable for stable investors who prefer low risk. Investors can predict the market trend and choose the price range where the BTC price will be located in the future to obtain revenue:

1. During the observation period, the target asset price has not exceeded the price range (i.e. hit range), and investors can obtain a high annualized yield. During settlement, the closer the target asset price is to the upper or lower limit of the price range, the higher the annual return.

2. During the observation period, the price of the target asset has exceeded the price range (i.e. knock-out range), and the investor obtains all the principal on the settlement date, and obtains a risk-free interest rate return of 2 ~ 5%.

Figure 1- Bullish Shark Fin

The closer the target asset price is to the upper limit of the price range, the higher the annual return.


Figure 2- Bearish Shark Fin

The closer the target asset price is to the lower limit of the price range, the higher the annual return.


Comparison of different shark fin products:


Gate.io offers bullish shark fins, bearish shark fins, and daily shark fins. Compared with the linked price range, the smaller range of Gate.io is not only more in line with the current market situation, but also makes it easier for users to obtain the highest annualized yield. In addition, in order to avoid the price exceeding the range caused by the instantaneous fluctuation of the market, Gate.io uses a unique price sampling observation mechanism to record the perpetual contract price of BTC/USDT at 12:00 (UTC+8) every day. As long as the sampled prices are not knocked out of the range during the observation period, it can enjoy high annualized yield.


In contrast, continuous price observation used by other platforms is prone to low yield settlement due to short-term BTC/USDT market price exceeding the linked range. Therefore, Gate.io Shark Fin Products not only provide an appropriate rate of return and linked price range, but also take great pains in how to increase the probability of users hitting the price range. For the unique price observation mechanism of Gate.io Shark Fin Products, please refer to the detailed blog post.


On the threshold of product participation, Gate.io also provides users with the greatest flexibility. It only needs 0.0001 BTC to subscribe for BTC shark fin. The minimum investment amount of USDT shark fin is also the best in the industry. It only needs 1 USDT to participate, so that users can make full use of every idle dollar in their account.

Suggestions for investors:

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The cryptocurrency market has been sluggish recently. After Bitcoin once approached $25,000, it continued to fluctuate around $30,000. Last week, the Fear & Greed Index of Bitcoin remained extremely panicked. However, President Nayib Bukele of El Salvador is optimistic about the future development and continues to buy despite the decline. Many senior cryptocurrency traders including Cantering Clark / Aylo / Cheds also said that investors should not be affected by the panic of the masses during the recession, and should review the current asset allocation and make appropriate planning. Investors can select appropriate financial instruments to continuously accumulate principal. We can enjoy the rich fruits of the next bull market after passing through the cold winter of the market.



Author: Gate.io Researcher: Farrell C.J. Translator: Joy Z.
* This article represents only the views of the researcher and does not constitute any investment advice.
*Gate.io reserves all rights to this article. Reposting the article will be permitted provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.