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While there was some genuine expectation of a crypto market dip for some time now, most investors were not ready for it to go below USD 20,000
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Cryptocurrencies across the board have mimicked Bitcoin’s nosedive. While there was some genuine expectation of a crypto market dip for some time now, most investors were not ready for it to go below USD 20,000. Now, the idea of Bitcoin hitting USD 15,000 is something that stokes fear amongst most crypto enthusiasts. 
At the time of writing, Bitcoin is holding steady, just above USD 20,000 after going under USD 18,000 few days ago. But there have been murmurs of the possibility of it going as low as USD 13,000. International strategists have looked at crypto rallies of the past, and they suggest that Bitcoin tends to drop about 80 per cent from all-time highs. For instance, it fell to nearly USD 3,000 after hitting USD 20,000 in 2017. More recently, the cryptocurrency breached USD 68,000, reaching its all-time high in November 2021, and now it continues on its downslide. The comparisons should perhaps help enthusiasts pace their expectations even as it hangs around the present level.
Credit: CoinDesk

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While traditional investors have stayed away from crypto markets owing to limited understanding and a general aversion to risk, it would be fair to say that digital currencies, as an asset class, attracts investors who like the romance of being in such a volatile segment. And for enthusiasts like Tejas and Musk, the current downslide only presents opportunities.
There have been larger-than-life detractors, including Warren Buffet and Bill Gates, who have made fair points criticising crypto and questioned its legitimacy. But that hasn’t phased enthusiasts who have thronged to this high-risk market. After all, crypto has appreciated 200+ per cent since 2019, outmaneuvering all other asset classes in recent years.
“Bitcoin is one of the blue chips, and it’s a great entry opportunity for the long-term investors. They can consider buying on dips in three to five tranches over the next two quarters”, advised Khaleelulla Baig, co-founder and CEO of Koinbasket. “Despite multiple regulatory challenges and crackdowns, and as observed in the past with multiple tests, cryptocurrencies are here to stay”.
What Now?
If forecasts are to be believed, the cryptocurrency market cap is projected to grow nearly 20x at least in the near long-term. This notion was backed even by US investment bank JP Morgan, which had predicted in January that crypto would rally as high as USD 146,000 in the long run – giving gold stiff competition as an alternative currency.
Khaleelulla Baig also seems to think on similar lines. “We estimate the total crypto market to surpass USD 10 trillion market cap in the next five years”, he said. But he warns investors against allocating too much into crypto. “It’s a risky asset; investors should not allocate more than 5-10 per cent of their money in the crypto portfolio”.
No matter how long the bear market lasts in crypto, the market still holds potential. But new entrants and enthusiasts need to be careful of how much they buy into the dip as risk remains large. But for those who are scared – HODL on!

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