Present & Future
It seems technical analysis does not always work, or we can say, rarely works with the crypto market. The market does not function like traditional markets. Crypto investors’ mood and decisions are often based on news and FUD. What we can see now in the graphs is simply the post-effect of the delay of the Bitcoin ETF.
Before the rejection of the ETF was announced the market capitalization stood at $255 billion. And after a quick fall following the announcement, the crypto market showed even more strength. However, now we are at $191 billion, which means that a quarter of the market capitalization has been lost in a week. BTC has just fallen to $5,990 at the time of writing this article. And that is a weekly drop of more than 15%. The currency suffering the most is Ethereum. It fell from $410 to $259 in a week, in other words, its value decreased by 37%!
What now? Let’s not deal with what technical analysts are saying now. Let’s base our prospects on factors that usually affect the crypto market. Three possible events can bring back the sun to the crypto sky:
First of all, obviously the SEC’s decision in favour of a Bitcoin ETF in one and a half months would set things right. It would definitely trigger a bull run and result in growing faith among investors. But what if the SEC remains skeptical about the crypto market because of the volatility that we can still see?
The second factor that can boost a positive mood in the crypto market is actually quite simple. As ethereumworldnews.com puts it: “The crypto traders might just find it within themselves to immediately continue trading without the idea of the SEC at the back of their minds. The inventor of Bitcoin, Satoshi Nakamoto, never intended for the fate of Bitcoin to lie in the hands of the financial institutions it was created to avoid. Therefore, we, the people, have a majority say as to what the future of the crypto markets will be. We can decide to let Wallstreet determine that for us with ETFs and companies like Bakkt, or we can go on with business as usual like we did before all the hype of Institutional investors.”
And the third factor is a decision that you, I, all of us who have invested in cryptos can make. That is to decide to keep our faith no matter what is happening in the market. We are in the middle of a storm, we can say, and we have two options: we can abandon the ship and swim to the shore with whatever we have left, or we can stay on board and hold on until the sky clears out.
We believe, like so many others who are still holding on to their crypto investment, that in five years, we will hardly believe that we were on the verge of giving up but, thank the goodness, we kept our faith.
At the moment, there is not much more that we can focus on. But, in the long run, we believe what is happening now is nothing more than a tiny distraction and most promising predictions will one by one become the crypto market’s reality soon.