It's time to go shopping! Cryptos are on sale! The bull run is over. Anyone that was waiting for a correction got what they wished for (sarcastic tone). However, it is not a "bear market". That's based on the percentages of the Bitcoin and Altcoins averages and their respective losses. A bear market would be a result of a 50-90% drop.
Don't wind yourself up into an uproar over the crypto market. I giggle when I read headlines like, "Dogecoin will be the collapse of the crypto market over the next few 69 days" There's always some arbitrary measure of time in an offbeat number of days, weeks or years.
The way I see it, this slight downturn is taking some of the fluff off the top. If you bought high, as some Dogecoin investors(??) did, your losses don't feel so good right now. But, hopefully, you didn't chase investments that have topped off, hoping that they'll continue their increase. That's Investment Sin Number One: buy-high, sell-low. If you've done this (again), it's time to step away from the trading apps.
I don't have any control over Elon's next tweet, and neither do you. But I do know that I can control my reaction. This is the time to test yourself. Are you thinking about getting out of cryptos at the slight sign of a correction? Or are you prepared to wait it out? Better yet, are you thinking about buying? My mouth starts to water when specific cryptos go on sale. When I don't buy after a price descent, I regret it later.
What are signals for when it's time to run? I find this is not easy to determine in the crypto space. In traditional stock markets, it is a bit easier to define when it's time to run when companies are buried in debt, when credit dries up, when new trade laws block commerce, and growth has come to a stand-still. Entire industries can be wiped out based on one piece of legislation. But if that's not happening and fundamentals are strong, you're looking at an emotion-filled selloff.
My best example of this was back in 2017. I started following many cryptos, mainly out of curiosity, one being ETH. Before the 2017 bull, ETHs price was fluctuating below $50. I couldn't believe my eyes. I knew that ETH was here to stay and that the low price was related to the pessimistic aftermath of the ETC / DAO rollback. I bought a few ETH at $50 each and knew that it would double in a short time. It never felt more right, and within several months, I cashed in my ETH at $90. That money allowed me to invest in an ETH mining rig which I was anxious to purchase. I could have bought more using idle cash, but I stayed conservative. As Jim Cramer once said, "No one ever got hurt taking a profit".
I'm watching crypto markets, and I plan not to be so conservative. If crypto prices get too low to pass up, I may split my cash between some good buys and paying off debt. Hopefully, in the long term, the good deals will offset the short-term debt obligations.
Thank you for reading and hope you have a good rest of the day!