CROSSING THE “RED” SEA

…2018 isn’t just the year” — many grumble; ….“let’s gird up our loins and look up to a better 2019” — some say. The year has been terrible for crypto enthusiasts across the globe and has a comparatively low performance rating with last year. 2017 is regarded by most as the “crypto year”; it was the year that saw Bitcoin surged past $20k+ and ETH enjoyed the same colourful feat at 1.3k$. It was the year that gave the world of digital assets trading the loudest publicity since the inception of the blockchain technology.

Who would have thought 2018 would witness a huge downturn in the crypto economy? Technical analysts and speculators had earlier predicted a similar trend in the annual cycle of “bear”, “HODL” and “bull” in the industry as witnessed in the past. I remembered in January, majority had earlier predicted BTC would trade between $6k — $60k this year. It would appear as though they were right with their speculations when BTC was trading at around $6k+ in September, not until the unexpected sharp nosedive witnessed in the early days of November up till this present moment — a time when everyone in the blockchain eco system had anticipated to see some trending green candles.

For the self-acclaimed specialists in the crypto market, the year 2018 has so far defied all the principles of fundamental and technical analysis. Newbies who joined the league around January when BTC and ETH were $20k+ and $1.3k couldn’t but express bitterness and an unpalatable experience in virtual assets trading. While some had earlier cut their losses by selling off (all or a good percentage of) their crypto assets, a good number who are bred with the HODL mentality didn’t seem to budge even though their crypto assets had depreciated by (-90%+) and are barely keeping their heads above water; the only hanging thread for everyone in this category at the moment is “the bull would eventually run”. But when??

At $8000/BTC, everyone thought “we’ve hit the rock bottom”; who would have predicted a further dip? Then came $6400/BTC and crypto folks were all “let’s keep buying the dip”, then $5000, $4000 to $3500 and a consequential bloodbath of Alts in November and it doesn’t seem like we’ve seen the deepest of the dip — At the moment the journey seem like an endless ride through the “red” sea.

A quick recap into the events that purportedly contributed to the long bloodbath;

February; Chinese new year (the genesis)

April, the United States SEC showed a keen interest in reviewing crypto assets (especially Bitcoin and Ethereum)

April — June, Facebook and Google placed ban on crypto currency ads

June — The director of corporate finance for U.S Securities and Exchange Commision; William Hinman declared Bitcoin and Ethereum as “unfit” to be used or regarded as ‘securities’, he however stated that some ICOs could be.

September — the SEC ruled out approval for Bitcoin ETF proposals

November — Bitcoin cash hard fork

All hopes were high ahead of the Malta blockchain summit held on 31st October. These hopes were dented as the market rather took further hits, raining more blood over the anticipated greener pasture. At the moment it appears no one knows for how long we’re gonna wait out the storm.

As if the aforementioned were not enough, Bakkt pulled back into announcing their strategic integration and investment in crypto currencies in November till January, 2019; a strategic “move” to steer clear of the current storm as some sources claimed.

Although, many have attributed the declining market condition to manipulations by the whales in the space, some claimed it is relative to the assertions that the blockchain technology is yet to pose a proven use case and many believed it is highly due to the continuous adoption/regulation jabs thrown at crypto currencies and blockchain technology in various countries of the world. It is generally believed however that no matter how deep the market dips, the bull would eventually take over.

The common question that all crypto asset owners and traders keep asking at the moment is “how does one survive this storm?”

The obvious way to scale through the current market situation without developing a heart attack is obviously by keeping your mind off your crypto investment. This can be achieved by ultimately adjusting your life style (cutting expenses) to suit the current market condition so you are not poised to dip hands into your supposedly less-valued assets in order to make ends meet. This is the case of the giant crypto content site — Steemit, who was earlier reported to have laid off about 70% of her staff, citing the bear market as the reason behind the action.

It is imperative as a crypto trader to have an offline engagement. This is a good time to focus more on offline investments in a bid to shy away from crypto market and for continuous inflow of income to meet daily needs. Funny as it may sound, the continuous market dip is a perfect opportunity to keep “buying the dip”, for whoever have the financial buoyancy and his willing to take the risk — this is because from all indications the bull will still run.

More importantly, “no thinking” — the market situation seem more like stage play and drama on the intercontinental scale; best you could do? Sit back, relax, grab some pop-corn and enjoy the show!