The cryptocurrency market again experienced a huge dip, the price of Bitcoin, which once reached an all-time high of $64,000, has come down by more than 35 percent. This has created a panic situation among the investors, especially the newbies. However, the oldest pros in the market are enjoying this fall-off, as now they can buy more cryptos at a lesser price.
The most frequent question I came across during this time is, “When is the right time to invest in Cryptocurrency?”
No doubt, this generation is getting attracted towards the digital asset investment but at times, they are not able to find proper guidance for it. Like recently, during the bull market, many individuals purchased cryptos but as the market reached its peak, the same individuals initiated panic selling, which brought the market down.
It is important that before entering into the market, the individual or the company collects in-depth knowledge of the crypto world.
Being a volatile market it is difficult to predict the value of cryptocurrency. However, there are some experts who do predict the market and mostly their prediction turns out to be profitable for them and their followers.
Today, the crypto market again experienced a drop in its value and now, the investors are in dilemma, whether the market would go further down and whether they would suffer a loss in their investment?
Individual needs to understand that they are not running the market but the Whales in the industry. They manipulate the market and earn a profit from it.
The short-term investors are the ones who easily get manipulated by Whales Account movement. For instance, recently, Dogecoin, also popular as meme-coin, reached its all-time high in the market. The audience assumed and it appeared that Tesla CEO Elon Musk’s tweet manipulated the market but in reality Whales did it.
Whales already have billions of worth of cryptos in their account, they manipulate its demand in the market to raise its price, however, the supply remains the same. As soon as the cryptos market hits its peak, whales started selling their cryptos and earn a lot of profit from it.
Now, many short-term investors, who bought Dogecoin recently, believe that its market would rise and they would earn profit. But, when more individuals started investing in Dogecoin, the market suddenly started falling down. However, at one point it did go up, and many short-term investors started a panic sale, due to which the market slumps down. The short-term investors did think that it was their best decision to sell the coin but the fact is, compared to the Whales account, they did not earn much profit.
Today, Whales end up getting more richer and the short-term investors did not realize that.
Recently, blockchain data analytics firm Glassnode published a report specifying, “There are strong signals that short-term holders are leading with panic selling.”
What’s happening in the cryptoland?
As always: Get rich quick short-term traders are losing money and patient long-term investors are buying assets that will very likely produce amazing returns in the long run.
And the same thing is happening in all walks of life: in private life, in business, in sports, … Long-term thinking always wins.
My case in point: two to three years ago I and my clients bought:
– Cardano at $0.05 to 0.1, now it’s at $1.5
– Ethereum at $200 to $600, now it’s at $2,500
– Bitcoin at $3,000 to $10,000, now it’s at $36,000
– Theta at 0.11 to 0.3 and now it’s at $6 (we sold a third at $10 and a third at $14)… and I could go on and on.
And if you have the patience to wait a couple of years these numbers will appear very small.
Learn From Past
Today the cryptocurrency market, which earlier has a market capitalization of over $2 trillion, has slumped down almost 50 percent and reached near $1.46 trillion.
This is not the first time, after reaching an all-time high the crypto market collapses. Earlier in 2011, Bitcoin experienced a surge of 3200 percent in its value, from $1 it reached $32 in just three months. But that value did not last for a long time, just three months later, Bitcoin value started declining and by November 2011, it reached almost the price it started from, i.e., $2. This was the first price bubble the industry experienced.
In the following year, the cryptocurrency saw marginal growth in its value. But in 2013, it underwent two price bubbles consequently. During the first bubble, the crypto trading started at $220 but later came down to $70. After the second bubble, the Bitcoin market trading settled at around $760.
The same situation occurred in the following years also, but it is to be noted that after the price bubble occurs the market starts rising for sometime.
Here, what I am trying to say is that currently, the crypto market would be declining but a few months later, it would surely surge high.
The recent fall is driven by many unfortunate incidents like Tesla declining Bitcoin payment, China imposing a ban on crypto-related activities, but the market will start recovering soon.
Short-term investors should also learn to make investment choices on the basis of their research.
I like to invest in corrections and not when the prices are already sky-high.
Not a financial advice but this is very likely the last opportunity to invest in serious business crypto projects that create real value while the prices are still “normal”.
In the future, the crypto market will very likely make a huge multi-month parabolic move that will melt faces.
Do your own research, invest only what you can afford to lose. Again, Not a financial advice.
“… Long-term thinking always wins.”