We have been facing a six month old bear market in the crypto sphere, and one could think that the bubble has popped and that it is all over. But let us zoom out.
If you compare the two pictures above, you see a similar pattern. The picture on the top is the global market index and the bottom one is the Bitcoin price chart. The problem is not in Bitcoin or any other cryptocurrency, it has to do with the global economical spectrum. At the moment we are facing a crisis in Europe and it is some years overdue, we saw Greece collapse and we recently saw Italy ask for help and now the Turkish Lira is collapsing as well.
The graph above looks familiar doesn’t it? It is the Turkish Lira going down, and it has lost over 20% in value against the dollar during the last week. It is more frightening to see a national currency collapse than it is to watch our speculative assets go down, which are following the global economic index.
Since Donald Trump won the election, he has done what he promised, to strengthen the dollar, and as our beloved altcoins are paired against the Bitcoin, most of the Worlds currencies are paired against the dollar. As people holding altcoins are jumping ships to hold onto Bitcoin, people are moving from the Turkish Lira to hold the Dollar instead. Instead of following the cryptocurrency market, it is more important to follow the global economic evolution at the moment since that would have a stronger impact on us rather than our investments in digital assets. If you want to take advantage of the market, you should invest now, since the prices are down not because of the projects but because of the global market. The technology hasn’t changed, the companies, such as Huobi Global, are developing their beloved projects and we have seen tons of great news related to the cryptocurrency market. Choose the projects you believe will have a real world use case and invest as much as you are willing to loose, so you can sleep at night even though the market might dip a little bit more. Bitcoin and other cryptocurrencies has seen over 11 dips during the last year and it has always recovered.
If you want to be careful, trade against a more stable coin such as the Huobi Token, since Huobi will buy back Huobi Tokens with 20% of it’s profit from trades every quarter. When you have made a profit and you believe it is going to dip, trade, and then repeat the process. If you’ve done a technical analysis and believe strongly in a positions then use margin trading to strengthen your profits and go long on BTC for example.