The Bear’s Bottom is Here: What does this mean for Stablecoins?

Apr 17 · 3 min read
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The announcement we’ve been waiting for is finally here: The bear market is over.

Even though investors have been nonchalantly announcing the end of 2018’s bear market pretty much since its beginning, a surprise report by Binance recently shook the blockchain world’s waters. On it, the researchers commissioned by the exchange break down different factors, such as the volatility of the market, the number of institutional investors on it, and its similarities to the US stock market to conclude that, effectively, the cryptocurrency market has reached its bottom.

Bouncing Back

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This report comes right after a surprising 16% bounce by Bitcoin on recent days, followed by a couple of resistance breaks that seemed to indicate the market’s bottom. Even more impressively, both Bitcoin and the overall crypto market re-tested previous lows, successfully bouncing back and restoring investors’ trust. With Bitcoin trading at healthier prices and confirmation seemingly coming from all angles, a bull market seems to be re-emerging –one that technology believers would like to see remain. Despite the negative notion perpetuated by traditional media and finance of Bitcoin and cryptocurrencies being a bubble ready to burst, those with genuine blockchain and trading insights can’t help but get excited about this bounce’s following implications:

Active Trading = A Land of Opportunity

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In layman’s terms, a bull market means money –both institutional and from the general public — has more and better incentives to flow towards cryptocurrencies in general. These new flows, combined with the present volatility of the market, point towards the possibility of big gains for clever investors with the right values, and that have forged their abilities in the bear market’s troubled waters.

However, even bull markets fluctuate, which leads us to…

Stability: Altcoin markets vs Bitcoin, and the importance of stablecoins.

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A general notion in the crypto world is that, most like in traditional finance gold and fiat currencies tend to fluctuate and behave differently, so do Bitcoin and altcoins. It’s not uncommon, therefore, for investors to make a profit moving from one to another when the timing seems right. A general rule of thumb is that a Bitcoin dump will automatically affect altcoins, while growth for Bitcoin will be followed by altcoins in a matter of a few days –or even hours.

Using this strategy can result very beneficial for cautious investors, that can take advantage of stablecoins’ quick convertibility when it comes to waiting for either positive or negative breakouts. Holding stablecoins, therefore, users can safeguard their profits while carefully watching and waiting for the right moment to strike with a killer trade.

Asset-backed currencies

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As a closing note, it’s important to remember that, even in a bull market, cryptocurrency trading can result risky when not taking the right precautions. Asset-backed currencies — especially when redeemable, such as our very own DIAM — offer a haven for investors in this sense, as users have a gateway to exit the cryptomarket without going through fiat money. In this sense, the tokenization of assets helps investors avoid intrinsically flawed money in favour of commodities and assets with a clear use and value, something that even the most popular cryptocurrencies tend to lack. In this system, the blockchain becomes the definitive vehicle for asset growth and creative investing.

For more news about the development on the first, stablest currency with redeemable qualities, please visit


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