The cryptocurrency markets are collapsing. All major top tokens are bleeding red and the global market cap fell very low and is now reduced to $ 3.67 trillion. As per the latest reports published by the cryptocurrency exchange coin market cap as of Bitcoin fell below $7,000 again after breaking through its previous low, and is now trading at $4,
This is a volatile market but Ethereum, Solana, and Cardano were among the biggest losers. They all dropped about 10 per cent. Meme coins like Dogecoin and Shiba Inu are relatively doing well but even they are feeling the shocks of this market crash. Some meme tokens are showing stability in their prices and are a good investment even in this worst market situation.
Elon Musk is known for owning a wide variety of cryptocurrencies, from Bitcoin to Tesla (and sometimes even Dogecoin).
What should investors do now?
Should they also sell their holding amid the raging negative sentiments in the markets or should they HODL? Analysts are forecasting continued short-term volatility for the digital currencies, and other experts say that the future will include continued volatility as they evolve and grow.
Bill Noble, a senior analyst at Token Metrics, believes that $20,000 could be the worst-case scenario for Bitcoin. Some traders like using charting tools and patterns to try to predict what might happen in the future.
Bitcoin leading the market
It’s Bitcoin (BTC) that’s the market leader, and Ethereum (ETH) the second biggest crypto. Ethereum (ETH) faces additional near-term uncertainty. It’s having an upgrade, which means it’s about to launch its next step. This may not be good news for anyone who was expecting this to happen sooner.
Is the Long term investment a solution?
The long-term price predictions for Bitcoin range from nothing to $1 million or more and everything in between. Some people think the value of Bitcoin will disappear and be replaced with something else. One of the richest men in the world, Warren Buffett’s right-hand man at Berkshire Hathaway, Charlie Munger, believes the value of Bitcoin could easily go to zero.
Bitcoin believers are right about one thing—the digital currency of the future is going to be the digital currency created by Bitcoin. This new type of money is better than any of the fiat currencies we have today.
If you were in the early days of the internet, you’d be a billionaire, like Mark Cuban. Crypto is still in its early days, so it’s only a matter of time until it will replace fiat currency as the future of online commerce. Cuban likes the smart contract capabilities of Ethereum. He also views Bitcoin as more like digital gold, which he believes could be used to create a new form of financial freedom, especially for developing countries.
What of Ethereum?
Although ETH might hit the $23,000 mark by the end of 2030, most people are sceptical about ETH making a significant jump to reach that mark. It’s currently trading at under $3,000. Even the meme tokens running on its blockchain are doing fairly well. Most of the short-term price predictions above come from traders, not investors.
Traders are more likely to look at longer-term trends. They may think of their trading strategy as an investment strategy. Investors may buy stock or bonds that will provide them with a steady stream of income for the long term.
Long-term investment has the favourable situation
We favour long-term investing because nobody has a crystal ball. You can’t predict the future. Investing in the markets takes time.
Even long-term investors who invested in crypto need to be prepared for further price drops. This means only investing money you can afford to lose, and keeping crypto-only investments to a small percentage of your overall portfolio. If you think crypto and bitcoin have long-term potential, look for ways to mitigate the risks involved.
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Position yourself so that you can take advantage of any dips in the short term, and you are not dependent on potential, unrealized gains from crypto. Meme tokens are a good investment in this present scenario as they have loyal communities behind them. If Bitcoin continues to increase in value, you’ll have access to a greater return on your investment. But if the worst happens, you’ll still be able to achieve your financial goals.