The crypto apocalypse is here?
It is normal that in moments of the market like this you are in a panic. Especially if this is the first time you have experienced a situation where the price of cryptocurrencies plummets by 20, 30 or 40%.
We all go through that stage in our beginnings, but believe me when I tell you that later these descents make you indifferent. Well, this may not be entirely correct, because if you worry, not because they drop in price, but because you do not have more FIAT money to buy Bitcoin.
The fundamentals that led to Bitcoin hitting the 69k ceiling have not changed, so it is certain that sooner or later it will reach this price again or even exceed it. What has changed then? Why is the price plummeting?
Well, as I warned in my article on technical analysis, as more and more traditional investors join, the external elements that affect traditional finance also affect the crypto market. This, in addition to the same problems and scandals in the world of cryptocurrencies.
Let's see.
If you have not noticed, this year 2022 has not been very positive in terms of economic news from the second quarter. The effects of inflation began to be felt and the FED began its policy of raising the interest rate (something that discourages consumption so that prices fall but can cause an economic recession).
After losing its ATH in November 2021 and entering the Bear Market in 2022, every time Bitcoin tried to resume its uptrend some negative event pushed it back.
The Russian invasion of Ukraine and the consequent war that is still going on. The collapse of LUNA, Celsius and 3AC. Large increase in interest rates by the United States Federal Reserve to combat inflation. And now the situation of the FTY exchange that has plunged the price from 21k to 16k.
Come on, anyone with a penchant for conspiracy theories might assume that some occult elite doesn't want Bitcoin to rise in price. But here we do not go for that branch. It's just one more evidence of several things:
The world economy is on the brink of a crisis (or in the midst of one, depending on how you look at it) caused by predatory monetary policies (excessive money printing). This in the short term affects Bitcoin and, obviously, when it catches a cold, the entire crypto market gets a fever.
The fundamentals of Bitcoin and those who believe in them support it, therefore, when the bear market is overcome, prices will shoot towards new ATH. In my opinion, it's the perfect time to start doing DCA (dollar cost average) if you haven't already.
In short, let this crash teach you. Define the objectives for which you enter the crypto economy and look for coins that have fundamentals related to those objectives. For the rest, DCA and be patient.
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