It’s Tuesday and the market crashing is already a frightening possibility on everyone’s minds. In Turkey, with the Turkish Lira’s collapse, some crypto exchanges managed to gain significant volume increases. This small ounce of light was quickly dimmed after bitcoin’s price fell below $6000.
This is not an issue which is concerning only bitcoin. Many other currencies are quickly falling which makes the market crashing a more likely possibility.
Ethereum (ETH), saw a 16.7% drop in the last 24 hours resulting in the currency currently trading at $265.78.
XRP has unfortunately followed by having its price fall below $.030. This is the lowest price for 2018 which is in turn an overall 90% fall from the currency’s all-time high of over $3 back in December.
Currently the global market capitalization of all cryptocurrencies is less than $200 billion and this is the lowest point for 2018 yet. This is even scarier when many cryptocurrencies scored their lowest prices for the year last week.
The Market Crashing can be a HUGE opportunity for some investors
Now the question on every investor’s mind is “Is now the right time to buy”. Dips like the one from the last 24 hours are notorious for offering investors a quick cash out if the market bounces back. Many crypto critics often link every market rebound with a dead cat bounce. This is normal when it comes to cryptocurrencies because the markets are volatile, and they should be.
If we look at BTC for the last 3 months, we can see drops from $8.7K to $5.9K followed by bounces back up to $8.3K.
The opportunity for profit came many times in just 3 months. While nothing can come near to the massive surge of almost every cryptocurrency back in 2017 and the incredible amounts of profit that it generated, opportunities for profit are still here for those able to spot them. While I’m no oracle, I do believe we may be nearing the start of the next recession. Being optimistic is a valuable trait, but realism is far more important in the world of finance. Especially if we’re taking into consideration the markets crashing, it’s important to for us to stop seeing what we want to see, notice our own mistakes and the reality, not our preferred version of it.
Many people have the idea that a crisis is something which will go down in real time, but a modern market crisis is tied to confidence. A confidence crisis if you will, just look at Turkey as the markets price in future and they price out in a not-so-certain future. BTC is also a prime example of that. At the current time it’s also very hard to make a solid prediction since the “good” stocks are quite overpriced.
In order to prevent negative outcomes, I strongly wish to remind everyone willing to invest, no matter how good the dip/opportunity seems to be: “NEVER invest more than you can afford to lose!”
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Tags:bitcoinBTCbuy the dipcrashingcrisisdead cat bounceDipETHEthereumglobal market capitalizationmarket crashingopportunityprofitrippleTurkeyTurkish LiraXRP