If you’re reading this, then it’s likely that you’ve been interested in cryptocurrency for a while. You have not ride the bull run few months ago since you thought its expensive, maybe you’ve bought some Bitcoin or $Ethereum, but now those investments have plummeted in value. Maybe you know someone who’s invested and they’re not happy about it. Or maybe you just saw an article about the latest bitcoin crash and thought, “I want my money back.” Let’s forget about all that drama for a second: let’s focus on what’s happening here in the present moment. Bitcoin and all other crpytocurrency are dropping like crazy! 50% drop? 80%? Look at $LUNA dropped 99% of its value in May!
Cryptocurrency is a great investment and there are plenty of reasons why. First, at its core, cryptocurrency is a new technology – digital currency. That means it’s not physical like gold, silver or cash. Bitcoin and other crpyto is more accessible than other investments, which means more people can get involved. And because cryptocurrency is decentralized and defi or decentralized finance are becoming more popular every day, its the next big thing in financial industry.
Cryptocurrency is trending downwards because of a few factors:
Bitcoin – the mother of all coins loss value
The price of $Bitcoin has dropped by more than 50% from its peak last year. This means that people are selling their coins at lower prices—and thus making less money if they sell them—and buying them at higher prices. The same thing happened with Litecoin when it fell from $270 last year to $60 over one year. So if you want to buy into cryptocurrency now, make sure that you know what you are doing, might as well wait for consolidation and buy at breakout!
Massive Supply with Downtrending Demand
The fact is, cryptocurrencies have been going up for 2 years and supply as been overwelming to met the demand. With oversupply and the lack of demand and a massive amount of supply. This has led to a downward trend in prices, which makes cryptocurrency an unattractive investment. People are losing trust in cyptocurrencies just like what $LUNA did- makes people lost their interests.
Whales are taking profit
Whales were making huge profits off their investments and then decided they wanted to cash out before things went too far up again. So they dumped their coins and make the cyrpto loss its value even more. This caused a panic sell-off that sent prices crashing down across the board—and when you’re dealing with such volatile markets, no one wants to get caught holding onto something and will just abandon ship.
So, is it a good time to buy cryptocurrency now that the market is down?
The answer is… it depends.
If you’re looking for a way to get into the game while prices are low, then yes—it’s a great time. But no one even know when the downtrend to be over, you might think that its already low but it could go even lower in few weeks. If you want to be able to make money off of your investment, though, it’s probably not the best time and just as I said above to wait for more confirmation and ride the consolodation stage.