While corrections will undoubtly occur, I don't think Crypto is going to experience another Crypto crash of magnitude that we witnessed in 2018 - followed by Crypto winter. Here are my arguments:
1) In 2017, Crypto marget cap surged mainly because of individual retail investors whereas nowadays there are more and more institutions using Bitcoin as a store of value. Institutional interest will only grow. Institutions aren't as likely to sell all their assets on a day to day basis.
2) Crypto is alive. When the market crashed, people feared that Crypto is just a failed project at this point, burst bubble. As we can see though, Crypto is back and stronger than before. This means that it's likely to come back again (and possibly stronger) in event of market crashing - which will encourage many investors to take the risk, hold and not sell. This will significantly dampen the magnitude of a crash.
3) January 10, 2021. After Bitcoin reached impressive ATH over 40K USD it dropped as low as 30K in the next 48 hours. That's 30 % drop. At that point, many investors (including me) panic sold their position in fear of 2018 repeating itself. A month later Bitcoin is almost back at the ATH level while many other Cryptos recorded impressive ATHs. Bitcoin managed to stay around the 30K mark (thank you Michael Saylor and Grayscale) while redistributing holdings from retail investors to institutions. This will further increase market stability.
That's why I'm optimistic about the future and don't expect another major crash. I don't even think Bitcoin is going back to 30K, ever - only in the event of some crazy worldwide crypto regulations.
Of course, cryptocurrency market is anything but predictable - but in the event of market crashing once more, investors can look back at past "ressurections" and rest assured that crypto is here to stay.
I'm curious about your opinions, I'm no financial consultant or anything - just wanted to share my point of view.
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