The end of May puzzled the crypto industry with a notable bearish coup on the exchange. In the last trimester of May, the TOP-25 cryptocurrency showed a noticeable decline. So, on May 22, bitcoin fell below $ 8000 for the first time since April 18. Ether and Bitcoin Cash sank 14% in a week, EOS – by 6%, and XRP – by 8.5%. The only winner that week was TRON (TRX), which reported a slight increase in its quotes.
The trend of one of the main market markers – the ratio of the cryptocurrency pair of Ethereum and Bitcoin – also changed to a downward one. Because of this, other Altcoins, based on the Ethereum blockchain and, therefore, partly dependent on its position, may fall sharply if the bitcoin rate continues to decline. At the same time, the cumulative cryptocurrencies market capitalization decreased to $ 322.5 billion, sagging by 14% compared to the second trimester of May.
What should traders do in the market, which turned out to be bearish paws? Recently, venture investors are already pretty skilled in the issues of cryptocurrencies and are already strongly advising traders what to buy, what to keep and what to sell. Although in January this trend among large fiat investors was not so obvious.
Cryptocurrency investors recommend
For example, Spencer Bogart, a partner at Blockchain Capital, believes that the current situation on the exchanges is beneficial for a successful purchase. “Since bitcoin has recently been used more and more often and it still has many institutional interests, it is worth investing in it. All the big banks are trying to work with him, offer their clients. Some open trading platforms. A deeper institutionalization of bitcoin is generally positive, “the speaker said.
Despite the descending dynamics of the world’s first cryptocurrency, Bogart is very bullish about his future. “Can bitcoin be cheaper? Certainly. But do I think that in a year his course will be higher? Absolutely sure, “- he explained in an interview for CNBC.
Positive forecasts, however, do not apply to altcoins. “Many cryptocurrencies are overvalued and unreliable. There is a chance that they will “shoot”, but they have many obstacles for this, “Bogart said.
Another venture investor recommends taking a closer look at Cardano (ADA), TRON (TRX), IOTA (MIOTA) and NEO (NEO).
Interestingly, as for the Ethereum Spencer Bogart is rather cautious. “The thing is, there’s a lot of ICO on the Ethereum blockchain. It is not known what will happen to these projects and how this will affect the airing Ethereum course,” he commented. “On the other hand, I would hold in the purse of such big players as Ripple, Bitcoin Cash and EOS.”
Other crypto enthusiasts also express rather cautious forecasts. “What to do on a bearish trend, which, in the medium term, is not confirmed by anything? It is definitely not worth buying cryptocurrency in speculative order. If you are going to take something for six months or a year, then do not take anything. If you are already sitting in a long-term portfolio strategy, then hold, because on a short-term trend it is unclear whether it will be possible to jump out and jump again at a more favorable price. Selling only makes sense if you are a professional trader. But even they can trade, in fact, only on technical rebounds, so in any case it is better to keep their assets. In general, my recommendation is to pay attention to altcoins with low capitalization, because the market is now settling down, and the altcoins after the bitcoin are sinking at times more.
What to do in conditions of a recession in the market, each trader decides for himself. The most important thing is to correctly form your cryptocurrency portfolio and not panic if there are fluctuations in the market. Especially on such volatile as cryptocurrency.
Cryptocurrency investors recommend