Long-term Crypto Investors Say Crypto Market Dips Are a Great Time to Buy Crypto says 2 Crypto Experts

2 min read

Did you get spooked during the pre-Christmas sell-off in the crypto market? As cryptocurrency numbers dropped during the holiday season, we talked with two crypto experts on their thoughts on whether now was a good time to buy crypto.

Major cryptocurrencies, including the behemoths like Bitcoin and Ethereum, lost up to a fifth of their value on the back of profit booking and concerns triggered nearly a billion dollars worth of selling across cryptocurrencies.

The sudden sell-off in bitcoin and other cryptos comes on the heels of some serious stock market declines, in the US, said Raj A Kapoor, Founder, India Blockchain Alliance.

“There has been a lot of chatter that the widely-expected Federal Reserve ‘tapering’ could prick the bitcoin and crypto bubble. Tapering is the gradual slowing of the pace of the Fed’s large-scale asset purchases, he added.

However, the digital token pack witnessed a swift recovery in the last few hours and many tokens recouped the majority of losses, while a few posted mild gains from the lower levels.

Market experts suggest that it is a good time to buy digital tokens for domestic investors, but one should stick to quality and make long-term investments.

According to the data from Coinmarketcap, Bitcoin hit lows of $42,874.62 on Saturday, before hovering around $49,000 levels on Sunday 10.30 IST. Similarly, Ethereum tested $3,500 levels before crossing the $4,100 mark again.

Hitesh Malviya, Founder, itsblockchain.com said that from a market standpoint alone, the covid related news had a huge impact on a risk-on asset like bitcoin, which controls the entire markets with high correlation.

“The fact can not be ignored that markets recovered more quickly than the last correction,” he added. It took six months to recover when the pandemic hit us and less than 2 months after the second wave.”

Bitcoin and especially smaller cryptocurrencies remain highly volatile compared to traditional markets, with the likes of Ethereum, Binance’s BNB, Solana, Cardano and Ripple’s XRP oUen bouncing double-digit percentages in mere hours.

Among the gainers, Terra, Helium, Decentraland, Unus Sed Leo rallied between 9-22 per cent in the last 24 hours. Dollar pegged Tether and USD Coin held some marginal gains, providing some relief to the investors.

Medium and long term investors should see it as a great opportunity to start accumulating in small lots, suggested Kapoor, who advises investors to allocate 5 per cent of their portfolio to cryptocurrencies.

“For those who invest in cryptos for the long-term using a buy-and-hold strategy, swings like this are to be expected,” he said.

In the metaverse space, Kapoor has picked SAND and MANA as good investment bets, whereas Energy Web Token and Powerledger are his picks from the energy sector. Among the DApps and Defi space, he has picked Ethereum, Avalanche, Solana, Uniswap and Terra.

On the contrary, EOS, Theta, Internet Computer, Dash, Waves, Nexo, Filecoin, Harmony, Qtum and 1inch Network were among the top losers on Sunday, bleeding up to 15 per cent each. All these tokens posted double-digit cuts.

Despite the selloff, investors lapped up cryptocurrencies at lower prices. Despite the 4 per cent fall in the market cap of the digital tokens, the traded volume of cryptocurrencies surged about 45 per cent and crossed the $200 billion mark.

Malviya, who is bullish on Bitcoin, Ethereum, Polygon and Terra, cautioned that if the cases of Omicron variant rise in the countries like India and the US, the Bitcoin and the crypto market may correct further.

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