The prices of most cryptocurrencies have dropped significantly in the last 3-4 days – somewhere around 40%. Is it time for panic and panic selling? Nope. Not much has changed since then except a few regulatory news in some countries. Is there a long term possibility that
means these cryptocurrencies won’t work anymore after this weeks changes? No.
Did any properties of this technology change dramatically? No.
Did their general use and idea change dramatically? No.
Did all these revolutionary technologies and investment opportunities get cheaper by about 40% since last week? Yes.
Am I going to buy more and add to my positions? Yes.
This means that all the key players (Bitcoin, Ethereum, Litecoin, Ripple, Cardano, Bitcoin Cash) are still as revolutionary as before, just cheaper because of some bad news that impact only one country – South Korea (3rd biggest cryptocurrency market). This news has caused fears amongst investors, pushing the prices down which likely led to panic selling, pushing the prices down further:
But the bad news isnt’ as bad as it seems:
- South Korean Petition Against Crypto Regulation Gets 200K Signatures, Government Must Respond – meaning that there is a strong interest from public to remove the ban and it won’t be left without a fight
- the volume will shift to somewhere else – the volume doesn’t come only from South Koreans, but worldwide users of South Korean exchanges. If they close Kucoin and Binance – people (and therefore the volume) will just move to another exchange that will list as many altcoins as these two. Of course there has been some level mass craze amongst South Koreans – raising the volume further, but that can’t be the bulk of it.
- Beginning of the year might be a slow period for investors generally:
There’s also positive news – like Ripple – XRP and Moneygram partnership. XRP is now at more than 50% discount at around 1 USD compared to last week – great opportunity to buy.
The cryptocurrencies and the technology is the same. Just cheaper. Use this opportunity – a clear “buy the dip” situation.
When you bought some cryptocurrencies a few months / weeks ago, did you aim to sell them in the next few months? If yes, you’re a speculator and day trader and this doesn’t apply to you. But if yes, then the reasons why you bought them didn’t go away. They are still here. Keep holding and if you have some spare cash – buy some more at these cheap prices. I have ;).