Is crypto dead? A thought likely whirling around in the heads of many investors that have been in the market for sub 12 months. For anyone that got caught up in the hype of August or November 2021, today’s prices, mostly down around 50-75% bar a few exceptions (Do Kwon we’re looking at you👀) may be causing rather a lot of hair-pulling. However, I’m here to tell you that while your concern is very much warranted, what we’re seeing is not the death of crypto but rather the birth of the bull run that could change your life.
A bold statement I know, but let me explain myself. When I say ‘birth’ I mean more like the first trimester, there’s still plenty of time to go before the candlesticks begin burning green again. However, that presents us with a phenomenal opportunity, we’ve got ample time to DCA into strong projects at prices that most of us could’ve previously only dreamed about. While I appreciate that it’s not easy to muster the constitution required to invest at a time when the market is bleeding out as a result of war, excessive money printing, and mass inflation, a certain saying rings true; when in doubt, zoom out.
Tales from the Charts – Historical Levels
What this chart shows is the price of Bitcoin going back to 2017’s highs. As you can see, it took three years for Bitcoin to exceed its previous high, and during the process, it dropped by almost 85%.
We’re down around 50% from our high range, meaning there could still be further drops from here, so prepare accordingly. However, it’s important to note that today’s crypto market is far different from 2017’s. We’ve got companies like MicroStrategy purchasing Bitcoin by the boatload, countries like El Salvador buying dips, and far more interest from retail traders than ever before. Because of this, it’s unlikely that the dip will be as severe as it was previously, but with the macroeconomic landscape the way it is, anything is possible. (Feb 2021-23 represents a 3 year period similar to the last great bear market, not a prediction just an example)
What happened following the three-year crypto winter? Anyone that held strong and bought the dip prospered massively, enjoying gains upward of 250%, altcoins also went wild, many of them eclipsing the returns offered by Bitcoin.
Every financial market is in turmoil right now, tech stocks & crypto especially, but once the smoke has cleared the winners will be those that remained strong and regularly dollar-cost-averaged their way into positions. If you invest in the market today, you might not make any money tomorrow, or even next month, but given ample time you will almost certainly profit massively. Of course, there will be a ton of projects that will not stand the test of time; it’s the way the world goes; for you to make money on the market, someone else must lose theirs. Therefore, please only invest in projects with solid fundamentals, a track record of delivering on their promises, and a respectable team devoid of known rug pullers and snake oil salesmen.
Leave a comment saying if you’d prefer to see a few of my crypto bets for the upcoming year or a brief guide on choosing great projects for tomorrow’s article. Thanks for reading and goodbye for now 🙂