Over the last week there has been an aggressive decline in Cryptocurrencies across the board. This fall in prices has closely tracked the recent decline in stocks listed on the Nasdaq and NYSE. It seems that the price of Bitcoin and cryptocurrencies in general closely track the price of stock equities and have an inverse correlation with the strength of the dollar. It appears that Bitcoin and crypto in general seem to decline in price when the US dollar gains strength.
Going forward it is hard to predict where the price of Bitcoin and the crypto universe go from here. If the stock market takes a nosedive then it’s a high probability that Bitcoin and crypto will follow that direction. There are many factors at play that give weight to the stock market taking a nosedive within the next few months.
The smart play here in my opinion is to wait and not panic. The entire market cap of Bitcoin and other crypto is less than Apple which was recently valued at $2 trillion. There is tremendous upside potential if institutional and retail investors flock to Bitcoin and crypto as a safe haven against the looming threat of inflation. So long as you haven’t put money into Bitcoin and crypto that you are not willing to lose you should ride this storm out. If the current crash continues then there is a golden opportunity to pick up Bitcoin and other crypto at bargain prices. Once again I have to advocate the purchasing of crypto’s that have proof of stake as you can earn more coins simply by staking your coins and being patient.
Currently I’m holding Bitcoin, Cardano and Tezos and I’m happy to ride this current downcycle out till the market recovers. I’m also looking to pick up more Bitcoin and Cardano if prices drop further to my price points.
Good luck to all and remain patient. Be fearful when others are greedy and greedy when others are fearful.