Analysis Expert Blog

Are we late?

A few days ago, many investors were panicking about whether they would be able to sell crypto until it completely fell. And today – a new panic: will we have time to buy at the bottoms to rise in the booming market?

X on alts? Or on the Corn?

It is believed that it is the altcoins that provide great opportunities to rise quickly. And indeed, compare BTC and Bitcoin Cash – if you count it as altcoin – and you will see the difference in growth dynamics by almost an order of magnitude. Meanwhile, stock market professionals, whose presence in crypto can no longer be overlooked, express opinions that are different from what cryptoinvestors say and discuss. Michael Novogratz, the founder and CEO of Galaxy Digital, stating the collapse of the cryptomarket, is optimistic about the future and is confident that the “digital way of preserving values” will remain for Bitcoin, most likely. And of course, the expert did not fail to emphasize that with the arrival of institutional investors to the market, Bitcoin has every chance of reaching new historical heights in the first half of 2019.

Between fear and greed

Trader’s life passes between these two most powerful emotions – fear and greed. So say the stock market professionals. Therefore, the first thing to do in a tense market situation is to relax. This is recommended by Mati Greenspan, senior market analyst at Etoro. Expert states: “First of all – relax. Making money with investments is a waiting game more than anything. And it’s the same as in the stock markets, it is the same as with any other type of investment. You don’t make money when you open or close trades you make money while you wait!” So Bitcoin has gone through various boom and bust cycles over the course of its short history. And a lot of the time we see bull cycles where we see the market going up by a 1000%, 10,000% in a single year or even within a few months. And then after that type of growth, you generally need to see a pullback as you mentioned during those periods of growth. You do get a lot of newcomers into the market and then after that during the retracement and then the relaxation period. This is an excellent time for people to up their knowledge, to learn more about the industry, learn more about crypto assets, learn more about how things work. And then during the next great rush they’ll actually become the experts! And be able to teach all of the newcomers at that time. So this is what we’ve seen play out many times in the past.

We are at the beginning

An analyst with experience on Wall Street somehow began to feel very confident on the crypto market exactly after the dramatic events of recent months – a long flat and the subsequent fall of the Corn. According to the pros, now the crypto market is more understandable to them, and it looks more like a real stock market. Ronny Moas, founder at Standpoint Research claims: The stock market is also getting hit really hard. Half of the names on the S&P 500 are down between 25% and 50% since January. So it isn’t only the crypto market that’s getting hurt it’s the stock market. Also as far as the crypto market goes we’ve been down this road before. We have parabolic moves and 80% corrections every couple of years and every time we have a parabolic move we knock out the high from the previous cycle. I don’t think the parabolic move that I am expecting next year will be any different. If you look back on the history of crypto and the stock market – people that sold at the bottom of a crash ended up regretting it shortly thereafter people jumped off bridges. The people that bought that panic did very well for themselves. And I believe anybody that buys this panic in the crypto market is going to do very well for themselves. We are at the beginning of this game, we are in a price discovery phase. There are weak hands getting shaken out. People who’ve never been in a situation like this before are acting as if Bitcoin is going to zero. I don’t think that’s happening.

And yet – we believe!

Well-known analyst and hapless cryptomarket predictor Tom Lee, co-founder at Fundstrat Global, underlines: I think people need to be patient. But I think one of the most important things that we advise our clients is that crypto as an investment should really be 1 to 2% of their allocation. So that number one they’re not worrying about it every day. But also that’s 2% could become 50% in a decade it can grow dramatically. I think the other thing is to realize that some of the crypto projects are probably hopeless. But things like Bitcoin and Ethereum or XRP have staying power. Сrypto is exactly this moment that Bitcoin may have a downside in the near term but does this change the fact that it’s still the earliest days of crypto? And it’s about to become an emerging asset class. Well, those are going to carry much higher prices. I think Bitcoin is going to do very well next year. If anyone is even worried that Bitcoin could go down in the next few months, it’s possible it doesn’t change the fact that adoption is going to grow. And that we have institutional investors that will have opportunities to invest. And I think that you want to be in front of that investment wave. So I think 2019 is a great year for Bitcoin.