Bitcoin is still holding above $65,000, but only just. A further fall for the king of the cryptocurrencies could be on the cards. The rest of the crypto market is painted blood red and looks to be facing total capitulation. It’s at times like this that fortunes are made.
An extremely nervous market
The sentiment across the whole of the crypto market is extremely gloomy. Bitcoin just refuses to get back above $71,000, and is rejected handily whenever it gets there. The rest of the crypto sector is taking a huge battering, and many holders must be on the verge of selling if they have not done so already.
Trading and investing can often be highly emotional pastimes. In traditional markets a swing of 3% to 5% in a stock can induce an attack of nerves, especially if this is to the downside, but in the crypto market the swings can be simply wild, and even 20% and more can be experienced even in a 24 hour period.
Of course, this wouldn’t generally be the case for Bitcoin, although it has happened, but among altcoins the sometimes vertiginous plunges can strike fear into the hardiest of traders.
The crypto market has been going through some tough times over the last two weeks. Any kind of a rally has been snuffed out within the following day or two, and $BTC has fallen around $6,500 in this period.
If Bitcoin holders are suffering, then altcoins investors are going to be in anguish. Even top-50 altcoins ranked by market capitalization have plunged 30% and more, and it may not be over yet.
Why invest in crypto?
Ok, so you are an investor in the crypto market, and you are here because you believe in the incredible innovation that is taking place. You know that stablecoins, payments, privacy, and many other use cases are being built out in this wildly entrepreneurial space.
You have an idea that crypto can be an extraordinary force that will disrupt the rather archaic systems that are the present incumbents. This technology will help to shape a very new and more equitable world.
And, most probably, you want to make some wealth from backing a few of the more fundamentally sound altcoins. Well this is your chance!
It nearly always happens that the best coins and tokens flow from the weak hands to the strong when there is any kind of decent price reversal.
If you seriously believe in your token, why would you sell it, perhaps for cheaper than when you bought it? It’s at these kinds of capitulation events when the biggest money is made. Picking up strong use case coins at very oversold prices is where true wealth can begin.
It might be argued that this may be a terrible time to invest in altcoins. That we reached the top of the bull market in March, and that crypto has been rolling over ever since, descending into the next year-long bear market.
Is Bitcoin doing anything out of the ordinary?
This isn’t beyond the realms of possibility. Every scenario must be taken into account when investing. However, the question must be asked: “Is Bitcoin doing anything out of the ordinary in comparison with previous bull markets?”, and the answer would have to be “no”.
The time to make a fortune is in times like these. There are no promises and there are no guarantees, but buying when the market is deep in the red could be a good strategy.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
