What does it mean for the cryptocurrency market after collapse?
The cryptocurrency market corrected more than 40% in the past week. Many famous tech investors came out and started talking about what is the worth of cryptocurrency and mentioned that they have sold their shares.
What is this correction means to a common investor?
The answer is a scary Ponzi scheme. People started speaking about cryptocurrency in the fall of 40% of its market cap. People with a weak investor mentality move out of their position. People who invested at the later stage of the bubble are bleeding money. Companies giving interest of 12% by investing in cryptocurrency will go bankrupt.
Story of a new beginning:
This fall will create a lot of buzz in social media and many retail investors will move out of the cryptocurrency. This will become a huge opportunity for institutional investors to have a stronghold of their position in the cryptocurrency market. No one instrument can grow this bug without a reason called why?
Please answer this question to get your answer.
- Did anyone change fundamentally to cryptocurrency?
- Was there any criminal prosecution made in the past week?
- Is there any country that banned the use of cryptocurrency completely?
The answer to all the questions is No.
I believe that cryptocurrency will fall 20% more in the next 3-4 weeks and start to consolidate again giving all the retail traders to move out.
The world revolves around the institution. These situations will cause more stacks in the cryptocurrency market to institutions. This is the reason for the fall of the market. Big institutions missed entering into cryptocurrency soon, so they are making an opportunity to enter at the lower price range.
15 days back, people were discussing the time frame for bitcoin reaching 100K and 500K dollars. Now media and other influencers were saying that bitcoin is not worth pennies. The value of a commodity depends on demand and supply. Social buzz and influencer’s greed created a huge bubble in a short period. Many people became millionaires will few thousand investments. Every opportunist booked part of the profit and waiting for more dips to re-enter.
Ask yourself about the need for cryptocurrency and what will be the future of currency. Come up with your solution. I will wait and start investing in cryptocurrency whenever I find a major dip in the market. No one genius should control the movement of the entire instrument. It is so dangerous for an instrument to move based on one tweet. Cryptocurrency is weak, so wait for the right price to start accumulating. The price should be something that should not be affected by anyone’s tweet.