Fears of a global recession and the worst inflation in over 40 years have wreaked havoc on the emerging cryptocurrency market this year. Coming into August, the crypto industry shows no signs of recovery. It is not easy for investors to stay calm, but it is important to remember that regardless of market conditions, never be an ostrich with your head in the sand, but rather follow the laws of the market and make the most of the current bear market opportunities to find investment breakthroughs.
Total cryptocurrency market cap falls 72.3% as it enters bear market:
After last year’s high bull market, 2022 ushers a bear market for cryptocurrencies, and the speed and magnitude of the bear market was exacerbated by the very brief and “spectacular” collapse of LUNA and UST. According to CoinW data, from November 10, 2021, when the price of BTC hit a new high of $68,989.13, it fell all the way down to a low of $17,633.40 on June 18 this year, a drop of more than 74.5% in 7 months.
The decline in BTC has also driven a plunge in the overall market capitalization of crypto assets: According to CoinMarketCap data, on November 11, 2021, the total market capitalization of cryptocurrencies hit a record high of $2,971.5 billion, while on June 19 of this year, the total market capitalization of cryptocurrencies fell 72.3% from its all-time high to $822.9 billion, which is $214.86 billion evaporated in seven months. Some analysts say that bear market of 2022 is the most devastating bear market in the history of digital assets.
So what should the average investor do in such a market environment?
CoinW 0 transaction fee helps users make good value investments:
According to analysts at CoinW Research, while there are some signals of a bottom forming, it will still take a sustained period of time and pain for the market to establish a resilient bottom. Bitcoin investors are not out of the woods yet. In terms of the macro environment, the market is still evaluating the U.S. economy and the Federal Reserve’s rate increase and is still in an overall bottom-seeking and bottom-building phase.
When market volatility becomes violent, it is often difficult for investors to make sound judgments, but that doesn’t mean you have to sit there and watch your assets decrease in value quickly. The market operates with its own pattern of bull and bear rotation, and investors can use bear markets to bet on long-term increases in cryptocurrencies. In this case, a price drop is a chance to buy lower and fill your portfolio more, and wait for the opportunity to close out at a profit.
CoinW is also the first company and exchange in the crypto space to implement the “buy low” strategy. It is not only the first platform to offer 0 transaction fee on spot trading, and all the projects listed are strictly selected by the CoinW Institute. In a bear market, CoinW helps users reduce transaction costs on the one hand, and guarantees project quality, item investment returns, project innovation, and project potential on the other, helping users make good value investments. In addition, sufficient liquidity and 0.001% bid/ask spreads provide users with the ultimate smooth operating experience. Users can open up their positions to collect chips of high quality projects in bear markets and cash in their gains when the market turns bullish, thus gaining considerable profits.
As American investor Charles Thomas Munger said, value investing is a mixture of patience and boldness, and it is good to wait quietly when there is a lack of opportunity, but not to be shallow when it comes. In short, a price drop is not a disaster, but a signal to accumulate holdings and wait for the next bull market.
In the next bull market of blockchain, perhaps the most important thing to thank is the bear market now.