VIDEO: Don’t Panic, Despite the Dip in the Crypto Market
Welcome to Crypto Investing Daily with your host, Alex Benfield. Today I’m reporting from beautiful Cartagena, Colombia. In this video presentation, I’ll discuss the recent turbulence in the crypto market. The article below is an edited transcript.
Over the weekend, crypto prices experienced a downturn following escalating tensions between Iran and Israel. Bitcoin (BTC) took an immediate hit after Iran launched an attack on Israel on Saturday. It’s currently trading around $61,000 to $62,000.
This price drop is unsurprising for a few reasons. The first is that crypto is a liquid asset in a world of illiquid investments. The crypto market trades 24/7, whereas the stock market is closed over the weekend.
Additionally, Bitcoin is still considered a risky asset. Risky assets tend to sell off first in times of geopolitical unrest. With traditional markets closed over the weekend, investors sought liquidity by selling their crypto holdings.
Despite the dip, there’s no need to panic. In fact, market downturns often present lucrative buying opportunities, as seen in previous bull markets. As we approach the current cycle’s peak, savvy investors should recognize the potential for significant gains amid market volatility.
While further downside is possible, the asymmetrical upside potential outweighs the risks. Many altcoins are primed for substantial gains in the coming months, with the potential for 2 to 5 times returns.
Looking ahead, we anticipate a period of market neutrality in the next few months, possibly leading up to Bitcoin’s upcoming halving event on April 20.
This brings us to another reason not to worry about the current market dip — this always tends to happen as the halving draws near. Historically, such events have been followed by explosive rallies, signaling exciting times ahead for crypto investors. The biggest gains of the crypto bull market often occur in the months following the halving.
In conclusion, despite recent fluctuations, the crypto market remains ripe with opportunities for those willing to navigate the volatility. Stay tuned for more updates and insights.
Editor’s Note: Crypto is making ordinary investors rich…and it serves as an inflation hedge, to boot. But you need to make your move now because the fuse is lit on this market. And every day you wait is literally costing you thousands in profits.
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This article previously appeared on Investing Daily.