5 takeaways from this week’s crypto crash and how I’m navigating the wreckage
The crypto market cratered this week destroying dreams, providing hope for investors late to the party, and filling millions of market participants heads with question marks about what comes next. The crypto naysayers had their arguments cocked and loaded waiting to pounce and flaming arrows in the wounded traders. We also have the crypto influencers who are trying to sooth their followers with hope that this market will keep going and they can still continue their gravy train. And don’t forget about the technicians who correctly called the drop. After all, they did say that the markets could go up, down, or sideways. My crystal ball broke a couple of weeks ago so I’m not going to try to guess where the markets are going in the near term, but I would like to draw some conclusions from what we saw and how I see this impacting the markets moving forward. This is not financial advice and I am not a financial advisor. These are merely my thoughts, opinions, and observations.
- Bitcoin isn’t going anywhere this cycle and still remains the crypto king
When Bitcoin sneezes, altcoins get pneumonia. The entire market got wrecked this week. Diversification offered little help and altcoins took more losses for the week than Bitcoin did. Worse yet, it’s looking like Bitcoin is going to have to stabilize and consolidate or rebound to reduce further bloodshed in the alt market.
My strategy is to continue DCAing into BTC, ETH, and LINK daily, but I’m probably going to hold off from jumping into anymore of the altcoin “gems” for now. This could prove to be wrong, but I prefer to put my money into projects that have staying power and are still outperforming their all time highs. I am still holding many of my alts as I think/hope that this market has not reached its cycle peak.
2. Having a strategy is more important than ever
The Bitcoin market is manipulated. I’d argue that almost all financial markets are manipulated and it’s too easy to get caught in emotions when it comes to crypto. Regret, FOMO, greed, fear, guilt, luck, euphoria…there are a rainbow of emotions you can feel in just a single week in the crypto markets. Combine that with a market that runs 24 hours a day, 7 days per week, and it can be…