Cryptocurrencies. Bitcoin Quotes. Sell, keep or buy? One million in portfolio – Invest

In mid-May, days after the $40 billion+ Terra network collapsed, one of its biggest investors and backers, Mike Novogratz (founder and CEO of Galaxy Dygital), who even had a Luna design tattooed on her arm a few months ago, broke the silence. He blamed the failure of the investment on the global macroeconomic environment and the cyclical nature of cryptocurrencies. And of the tattoo, he wrote in a statement that “it will be a constant reminder to him that Investing requires humility.”

Bitcoin Quotes. Extreme fear in the market

The lesson in humility that cryptocurrency investors receive is extremely painful. As the Fear & Greed Index, which measures sentiment in the bitcoin market, shows, “extreme fear” has reigned here for a long time. Last week, the Fear and Greed Index was 8 points out of a possible 100 points, the lowest level since the crash of the bitcoin pandemic in the spring of 2020. The Fear and Greed Index is highly respected among the cryptocurrency community, because by defining the current sentiment, it shows the direction in which it is likely to continue, there will be a market.

Therefore, the most sensible strategy for today seems to be as far away from cryptocurrencies as possible and selling what is left in our portfolio. Especially since not only the emotion index, but also other factors speak of deepening declines in the near future.

The price of bitcoin, i.e. the flagship cryptocurrency, for several days it has been hovering around 30 thousand. dollars, previously including a single descent below 26,000. hole.

– The cryptocurrency market is recovering from a decline. However, there are plenty of indications that this rebound is just a form of temporary correction, after which virtual asset quotes could resume their downward path, even slipping below last week’s lows. It also makes it more and more likely that bitcoin will even return below $20,000 – said Arkadiusz Jóźwiak on May 20 in Krypto Report, one of the most watched cryptocurrency channels on YouTube.

Since last Friday, June 9, Bitcoin clearly began to lose: in three days it plunged by 24%, and on a five-day scale – by 27%. Tuesday morning it was below 21,000 for a while. dollars, then returned to the level of 23 thousand. dollars.

As technical analysts point out, if you look at Bitcoin’s previous growth cycles, we are facing deeper declines and we should only see the hole in about five months. Then, if we make historical analogies, there should be a reflection. However, getting back to growth may not be so easy.

– The current cycle is different from the previous ones because there are factors that are disrupting the demand of the cryptocurrency market: high inflation and rising interest rates. Now bitcoin is and will instead follow the path of tech companies. We will have to deal with increasing risk aversion among investors, which will significantly reduce interest in cryptocurrencies. Ambiguous times lie ahead – comments Prof. Krzysztof Piech of Lazarski University, an expert in the cryptocurrency market, in an interview with CMC Markets. “The only hope I see is that the Fed, perhaps in cooperation with the US government, finds a way to fight inflation and avoid a recession at the same time,” he adds.

– Not only are cryptocurrencies crashing, everything is crashing, and in the next 6-12 months the economic outlook is bad. Central banks are between a rock and a hard place due to slow economic growth and high inflation. Thus, investors shun risky assets such as crypto and tech stocks, says Oleg Giberstein, co-founder of the Coinrule trading platform.

Bitcoin Quotes. Dashed hopes for a new “refuge”

The crypto disappointment is further fueled by the one behind they were to be an alternative to gold, a new safe haven, to profit in uncertain times and under conditions of high inflation. Moreover, the company Glassnode, which monitors flows in the cryptocurrency market, reports that more than 40%. Bitcoin holders lose them. It is therefore not surprising that the market is nervous.

On the downward wave of cryptocurrencies, more and more infamous opinions about this market appear.

Mark Mobius, the legendary American investor and outspoken cryptocurrency critic, a few days ago in an interview with Financial News, warned investors not to buy bitcoin that is falling.

– This strategy will not work this time. Bitcoin will fall to $20,000 from where a bounce may occur, but then the next target will be 10,000 hole. – He said.

Also Bill Gates, the fourth richest man in the world, the founder of Microsoft, once again spoke shamefully about virtual currencies.

– I like to invest in what has product value. The value of cryptocurrencies is just what someone else chooses to pay for them, so they don’t contribute to society, Bill Gates commented on Reddit when asked why he doesn’t invest in them. this market.

Even Christine Lagarde, President of the European Central Bank, spoke on cryptocurrencies. As Bloomberg reported, in an interview on Dutch television she said that “Is concerned about people ignoring the risks of investing in cryptocurrencieswho can lose everything and who will be bitterly disappointed. Therefore, in his view, cryptocurrencies should be regulated.

In my humble opinion, cryptocurrencies are worthless, backed by nothing, have no basis in assetswhich could serve as a security anchor – added the head of the ECB.

At the same time, she said she has no cryptocurrency. She added that her son is investing in the crypto market – against Legarde’s advice -.

– He is a free man – commented the head of the ECB.

Cryptocurrencies for the Bold: Wallet Reshuffles

Certainly, there are also investors who, loyal to the cryptocurrency market, want to stay on it and weather the storm here. They can simply wait with their wallet if they hope for a relatively quick return of increases (the so-called HODLing strategy, popular in the crypto community), or mix it up a bit. Alex Lielacher from advises, for example, transferring capital to stablecoins, i.e. cryptocurrencies secured by specific assets, for example dollars. Their quotes are generally less volatile, but not necessarily safe – as the owners of TerraUSD (UST) have discovered.

– If you are not so bearish and are worried about missing a market shift, you can shift your funds from small and mid cap coins to higher quality assets such as BTC and ETH. Although the boom during the bull market may not be as high, in the past BTC and ETH losses have been lower than those of smaller altcoins, the expert points out. – If you want to keep the assets you have in your portfolio but are worried about the market going down, you can hedge your portfolio by buying put options on BTC and/or ETH. Buying a put option on bitcoin allows you to sell BTC at a pre-determined price at some point in the future, he adds.

And what about “buying the dip”, the so-called buying holes? Experts agree that this is a very risky strategy today. Oleg Giberstein of the Coinrule platform says that if anyone has such an idea, let them set aside a fixed amount from which they will buy bitcoin or etherum each month and don’t worry about what they will happen in prices over the next two years.

Leave a Comment