Have you lost faith in crypto’s supposed hedge asset status due to recent price slumps? Don’t be too hasty in selling your holdings. Read Crypto Exponentials’ guide – learn why there’s no need to panic & why now’s the time to buy not sell.
Wondering where the latest crypto crash leaves you and your investments? Looking for some insider knowledge about whether you should stick or twist?
Head on over to the specialist digital currency newsletter and website Crypto Exponentials and read their guide to the recent crypto market slump. Learn why there are still grounds for optimism for traders and investors like you! More details at https://cryptoexponentials.substack.com
The guide draws parallels between the latest downturn in crypto stocks and the crash that accompanied the COVID-19 pandemic. While the market crash of 2020 led many to lose faith in crypto as a robust hedge asset, bold policy moves from world leaders to stabilize the economy resulted in Bitcoin rising in value by 1000%. In a similar way, the article suggests that the recent price drop and sell-off trend presents you with an opportunity rather than a crisis.
According to Crypto Exponentials, just as interest rates were cut during the global pandemic and more money was printed to stimulate an ailing market, the FED futures markets are taking an aggressive approach to the recent market drop. Experts believe that interest rate cuts are inevitable, with many calling for an emergency rate cut as early as September 2024. So sit tight! Relief may well be on the way!
Early August 2024, the piece explains, saw Bitcoin fall almost 20% in value from $63,356 to $51,026, with Ethereum following suit with an even bigger decrease of 30% from $3,307 to $2,234. Economic data in early August suggested that the global economy was slowing, prompting panic in Asia, compounded by a rapid unwind of the Yen carry trade that pushed Japanese markets lower still. Meanwhile, in the crypto world, market maker Jump Trading is facing forced liquidations of large positions in ETH.
The article goes on to discuss what you should look out for in the coming weeks and months. Taking a short-term view, it's unclear if the crypto market has reached its bottom plus sharp market pullbacks can easily take down firms with over-leveraged balance sheets. The guide recommends that you monitor ETH flows to see if investors sell into the pullback or react by buying more.
Crypto Exponentials advocates taking a longer-term view of crypto investment.
The article states, “Ignore the short term and keep your eyes downfield. Bitcoin is a volatile asset, with big ups and big downs. Always has been, and will continue to be for a while. Resist the urge to look at intraday prices, and focus instead on where bitcoin could be next year, in five years, and in ten years.”
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Disclaimer: The information provided on this page does not constitute investment advice, financial advice, trading advice, or any other sort of advice and it should not be treated as such. This content is the opinion of a third party and this site does not recommend that any specific cryptocurrency should be bought, sold, or held, or that any crypto investment should be made. The Crypto market is high risk, with high-risk and unproven projects. Readers should do their own research and consult a professional financial advisor before making any investment decisions.
