In less than 48 hours roughly US$20 billion has left the crypto market, and over the last 7 days that number increases to over US$32 billion.
No. Now is not the time to panic. While yes, it is hard to look at coin values seemingly plummeting to zero and for many there may be difficult decisions that will need to be made the reality is that it will bounce back. We have seen this before, not only in the cryptocurrency market but in stocks, bonds, gold, silver, oil and even the housing market. Everything at some point will fall and everything at some point will rebound. The best advice I can personally think of, it’s only a loss if you sell. I followed this advice with my house and that ended well, same with my stock investments again that ended well for me also. Every great fall in the history has been followed by an even greater rebound.
I have mentioned that the road the crypto market is traveling on is going to be a bumpy ride. We need to expect this. Overreaction in crypto is like the sun rising each day…its old hat. With regulations pending on ICO’s, the uncertainty from China, US Residents being removed from multiple exchanges and the numerous warnings Governments have issued to investors about cryptocurrency…this pullback was bound to happen. We must remember, China is now the second major market to be removed from ICO participation. The US was already pulled a few months back. Something had to break.
So why is this the time NOT to panic? Simple, there is too much progression. The SEC in the US is still approving exchanges and hedge funds to begin their ventures in the crypto market. Even more encouraging for the US, the SEC has made it clear that many coins fail the Howey test…meaning they are NOT securities and thus need not be ‘shutdown’ from being traded on exchanges. China, as unclear as it is too many, is still working with the likes of NEO and others to develop blockchain technology. Furthermore, on the China subject, the problem was the sheer amount of pyramid scheme ICO’s. Chinese investors were placed through a battery of bogus ICO’s as were we all with the ICO craze of 2017.
This, everyone, is why I stated previously that cryptocurrency needs regulations to succeed. The FUD (Fear, Uncertainty and Doubt) that is hitting this market right now all can be placed on greedy people taken advantage of an unregulated market place with billions of dollars waiting to be taken.
This will pass. How long? I, nor you can be sure. However, I have learned that the crypto market moves at lighting speed. What takes months or years in other markets, happens in weeks and hours in crypto. I offer no actual professional advice, but if anyone were to ask me what my plans are…simple. HODL and BUY THE DIP.
~CryptoJayson~
Follow me on twitter @crypto_jayson
Donation Addresses:
NEO: AXZ5AiCHXeEefG5Zo45waEV2QHdrqA93qc
ETH: 0x84f95A68FE5Ff16BB7e047c1484f4cd07fd1cB0a
BTC: 19uUE9K4ybS6zMMxCcjzDx9cz6cazh2ZTx
