Volatility in the markets is a direct consequence of uncertainty. The United States Federal Reserve has everyone on edge right now. The air can be cut with a knife. Here everything revolves, of course, around the speed of changes. Not too much, not too little. Not too late, not too early. Everything must be done in due time and in due proportion. What you want to avoid in this case is that the medicine is worse than the disease. But it is not easy. Investors are trying to guess the Fed’s next move. If the Fed does not act forcefully, inflation may continue to rise. But if the Reserve is exceeded, it can cause a recession.
The markets are concerned because the situation is worrying. And I don’t mean an apocalyptic event. In the world of finance, the main enemy is lack of clarity. Prices can go up or they can go down. This is not the problem. Because we all know very well that markets fluctuate. The worrying thing is not knowing what the next step will be. To invest, we need a theory of the future. We invest today with an expectation. Which implies that we must have a general notion of things to come. In the absence of clarity, investors seek refuge in stable assets. The markets fall. The currency goes up.
I would like to think that as usual the markets are overreacting and after the Fed meeting investors will calm down a bit. The important thing is to highlight the strength of our support. While it is true that Bitcoin is below $40,000, things could have been much worse considering the pressures. In the minds of investors, Tech and Bitcoin are very close relatives. And both sectors have proven to be very sensitive to macroeconomic factors. These are turbulent times. However, it is not the end of the world. We have to be patient.
Now, let’s take a critical look at this week’s most popular crypto news.
If you want to benefit from cryptocurrencies, this is the time, highlights a specialist on the fall of Bitcoin
It is no secret to anyone that people like to buy expensive. The problem is that many buy with the viscera. When the price of Bitcoin is through the roof, the market is overflowing with greed. And greed is contagious. During this period of euphoria, it is easy to be tempted to buy, because psychologically it is very easy to get carried away by the environment. However, that is the best way to lose money in this business. It is not quantum physics. It’s actually very simple. To make money, it is best to buy low and sell high.
The naive thinks that a rise in price is always followed by more rises. I mean, good streaks last forever. Obviously the concept of overbought is still not very well understood. Another thing. The masses are irrational and clumsy. They err much more than individuals. However, we are biologically conditioned to think otherwise. We think the people are wise. And if everyone says that Bitcoin is going to go up in price, that means that Bitcoin will definitely go up in price. Error. In most cases, it is the opposite. The successful investor understands this dynamic perfectly. When the streets are full of blood, that’s the time to buy. The time to buy is now.
What is Big Time and why is it going to be the next Big Thing?
I declare myself skeptical of headlines like this. It is obvious that this is a campaign designed by the interested parties. Every project begins with great promises. That’s valid. And it is the duty to be. No one starts with their head down. But “blockchain”, “NFTs”, “token” and “crypto” are big words. Anyone can send a press release with these words with a bombastic speech. The big question: Where is the user community? How much bread does your bakery sell?
Here I am not referring to Big Time specifically. It’s perfectly possible that Big Time will become the next Big Thing. However, first, you have to see the cheese on the toast. Anyone can write a white paper. Anyone can raise funds for a promotional campaign. The difficult thing in the video game industry is to compete with the big ones. And that is done with a community.
Bitcoin Falls Below $42,000 as New Forecast Says Breakout Is ‘Most Likely Outcome’ for BTC Price
Guess guesser. What do you eat you guess? Of course it is possible. Of course it’s likely. In fact, it already happened. The prophecy was fulfilled. In fact, this rupture occurred.
“Given Bitcoin’s current fundamentals and the size and consistency of the downtrend over the past 2 months, we believe a move out of the range to the upside is the most likely outcome eventually,” adds Decentrader.
Well, sooner or later, the sellers will get tired. Fears can last a long time. But they are never eternal. Between so much nervousness, the ups and downs are our daily bread. It is sensible to think that we will have falls. And we will have rebounds. Markets are like that.
Fidelity exec says Bitcoin is “technically oversold” making $40,000 “fundamental support”
Analysts are wrong. It happens in Fidelity. It happens at Goldman Sachs. It happens everywhere. It is normal. And it is valid. Because it is a game of probabilities. projections are made. Assumptions and estimates are made. But there are exceptions and surprises. I’m afraid there are no certainties in life. The only certain thing is the uncertain. Change is the only permanent thing.
Now, the supports are never exact. It is always wise to talk about ranges. You could say that $40K-38K is a range. However, I am well aware that many Fidelity customers bought at $42K and are now calling their agents with large claims. Are occupational hazards.
The Metaverse is not resisting the selling pressure with Axie Infinity and Sandbox about to drop up to 20%
If we check the archives, we will see that this topic was touched on by me in a previous column. An analyst was talking about Axie Infinity going up unabated, despite Bitcoin’s declines. I expressed my doubts about such statements for a very simple reason. This is a very basic principle. Illiquid projects suffer from volatility. That implies that in good times they go up a lot and in bad times they go down a lot. I understand that many analysts are infected by collective greed. And, in many cases, they are an interested party and must do the job of selling optimism. However, volatility is volatility. We cannot have the good without the bad. What goes up a lot, goes down a lot. As simple as that.
This is an opinion piece and Cointelegraph does not necessarily endorse what is expressed here by the author.
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If you want to benefit from cryptocurrencies, this is the time, highlights a specialist on the fall of Bitcoin
What is Big Time and why is it going to be the next Big Thing?
Bitcoin Falls Below $42,000 as New Forecast Says Breakout Is ‘Most Likely Outcome’ for BTC Price
Fidelity exec says Bitcoin is “technically oversold” making $40,000 “fundamental support”
The Metaverse is not resisting the selling pressure with Axie Infinity and Sandbox about to drop up to 20%