The deep knockdown that bitcoin received sent the rest of the cryptocurrency market in a tailspin. Today it seemed to have bottomed out, but there are opinions that the price correction will continue. Cryptocurrency prices and capitalization collapsed by half, except for some coins – like Cardano, which even rose. So what happened to bitcoin and what should investors do now? We will name the Top 5 Reasons to Be Bullish on the Current Crypto Market Cycle.
5 Reasons to Be Bullish on the Current Crypto Market Cycle
- In the short term, the price will recoup this fall, there is no doubt about that. Even though all 2021 savings were effectively cancelled, this did not scare off investors – more and more people are coming to the cryptocurrency market who are afraid of missing out on “such a unique opportunity” to make money.
- The number of cryptocurrency owners is predicted to double by the end of the year. Meanwhile, most new investors don’t understand the risks of investing in bitcoin and other cryptocurrencies. According to the ZME Science survey, only 16.9% of those who buy cryptocurrencies fully understand their value and potential, while 33.5% do not understand the subject at all. As long as this very flow of investors doesn’t dry up, nothing bad will happen in the cryptocurrency market.
- In the long run, everything will depend on financial regulators and big business. The growth in 2020 happened precisely because of institutional investors who entered bitcoin as part of their portfolio diversification. Big business is gradually adding bitcoin to its services, though not as quickly as previously thought. The speculative component of cryptocurrencies does not make it easy to part with it, paying for lunch in a restaurant, for example.
- Payment services – such as PayPal or Square – now allow people to buy cryptocurrencies in their apps. There are already many examples of cryptocurrencies’ penetration into everyday life and payments.
- Low cost. Now is a great time to buy cryptocurrency at a low cost. A smart investor always buys when the price falls and sells when the asset rises.
Don’t turn your back on the cryptocurrency market: investments can and should be spread across several coins, especially now that the market has corrected downward. You need to monitor your investments every day, fixing the growth immediately and waiting in “fiat” money for the next rally in another coin, there are already more than 3 thousands of them on the market.