So, as you may have seen, the crypto market took a hit today. Some alts are almost at their bear market price. So in this article, I’m going to explain my strategy.
What Happen ?
There is a lot of speculation around the vision of Jerome Powell, the director of the US Federal Reserve, regarding the reduction of interest rates.
For context, when the interest rate diminishes, liquidity flows into more speculative assets such as stocks and crypto. So, a few days ago, the FED said that they plan to reduce interest rates three times this year.
However, with inflation still above 3% (FED objective is 2%), their plan might be different, so that’s why liquidity is exiting cryptos.
Us Inflation (%)
Also, Jerome Powell will speak this afternoon, so the market is going to be very volatile.
Update :
This is bearish news, so we should expect a few more rough days or weeks.
The Crypto Market
A lot of long positions were liquidated, leaving us with a lot of shorts above 73k :
Coinglass
It’s important to note that we are still in a long-term very bullish trend, and that it’s normal after 7 months of green candles that we have a correction.
So, it’s important to not be emotional and not sell all because of a correction.
My Strategy
So I still continue to buy crypto, especially some altcoins that are coming back to a reasonable price zone. However, I don’t put all of my liquidity in right away because there is still a possibility of further correction. No one knows, so it’s always a good idea to have a bag of stablecoins to buy the dip.
I’m still convinced that the crypto market has bright months ahead. For me, this correction is a rare opportunity to reinforce my positions at a cheaper cost. As you may know, I’m a big fan of investing in tokens that surf a promising narrative, so now is the moment !
An you what will you do ?
As always thank you for reading !
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Disclaimer : This is not a financial advice, you need to do your own research !
