Bitcoin in Free-Fall? Will Crypto Rally or is the Bubble Finally Bursting?

by Matt

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Last night saw further losses in Bitcoin and massive losses across the crypto landscape as market turbulence continues to be a reality. The important thing to focus on is, no matter how crazy things are in the short term, these kinds of market corrections are just that, corrections. And bailing out early only makes the situation seem worse, because value is being taken out of the market, and you’re almost certainly taking a loss, which is what you never want to do in crypto.

That’s the point though, regardless of how bad some of the chaos in the market seems, most of these are just corrections, which means future gains are a guaranteed certainty. This is where we talk about smart and dumb money, and how mindset plays a huge role in investing, stocks, commodities, and crypto.

Smart vs. Dumb

Volatility is built into crypto. That’s half the reason it exists in the first place: it’s not tied to strict regulatory factors like fiat currency is. On the one hand, this is proof that very few crypto systems are ready to be taken seriously as currency in and of themselves. But on the other hand, this is a perfect environment for investors wanting to profit off of both short and longterm situations. To put it simply, dumb money is jumping out of Bitcoin as it dips back below $4000. Smart money is buying Bitcoin when it dips below $4000. Smarter money is looking at the trends and waiting to see if there’s an even lower entry point. As the tweet above points out, BTC is likely to correct itself back into the low $3000s. This is a perfect opportunity for investors, who will scoop up a ton at this price, knowing it will eventually go back up. 

What to do in the meantime? How to take a “smart” approach when much of the market is trending down? Well, first of all, this is an excellent time to buy alts. The past could of days, we saw what a few alts will look like in the not too distant future, such as EGC and PINK. Grab them at this low (adjusted) price, and then wait for the pumping to start again. Ride the wave, then bail out. It’s really that simple. I made a couple hundred off of the EGC wave yesterday, and I know a few people that made thousands. Just be observant and stick to a smart money mindset.

Bitcoin’s Future

It’s hard to say where Bitcoin will land, whether it will continue to go down for a few days or whether it will rally right back up to $4000. My advice is, if you are really unsure about BTC, research an alt reliable sources are bullish on, and dump some of your Bitcoin into that. You might be able to make a short term gain and then cash out, or perhaps increase your money at a faster rate than with Bitcoin, since it’s going to realistically be a while until it reaches past $5000. Just remember, don’t cash out on a loss, no matter what. You may lose some money in the short term, but think in investment terms, if you really are afraid of “losing” money, you’re playing with too much to begin with, and second, it’s an irrational fear. We know that crypto’s value is only going to rise, regardless of what China or any other country does, so in the long-term, it only makes sense to HODL even in “damage control” situations.

Want more crypto news? Definitely follow me on Twitter, where I ocassionally drop crypto-related nuggets.

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