Are Cryptos Doomed?
Cryptos had a massive sell-off 2 weeks ago. Are cryptos doomed?
We are in the midst of a crypto crisis
We are in the midst of a cryptos crisis. Tesla has made a $1.5 billion purchase of Bitcoin early this year and confirming that Bitcoin will be accepted for the purchase of Tesla cars. When announced, Bitcoin shot up above $40,000 to the ATH. However in May, Elon has tweeted a shocking announcement that Tesla is suspending the plan to accept Bitcoin for the purchase of Tesla cars, stating environmental concerns. This sparked uncertainty and anger in the cryptos community when the first sign of sell-off in Bitcoin happened on the 12th of May. The verdict is that investors out there would like to punish Elon Musk by making the price of Bitcoin go down to Tesla's average Bitcoin price at about $33,333. As Bitcoin is the leader in cryptos, Bitcoin sell-off also trigger all other cryptos to sell-off too.
Besides that, there was news that Binance, the largest cryptos exchange in the world, is currently being investigated by the US Justice Department and Internal Revenue Service with regards to money laundering and tax evasion. This has spooked many investors to withdraw their cryptos from Binance and move them to other US based exchanges such as Gemini and Coinbase. I am using Gemini all these while and loving it.
You may use the referral link below to sign up for Gemini and we will both be getting $10 worth of Bitcoin:
Are Cryptos doomed?
As time passed, the price of Bitcoin and other cryptos are stabilizing. This is the sign that the sell-off is slowing down. In my opinion, the price of Bitcoin will consolidate around $30,000 to $40,000 for the next few weeks or months. This will in turn build a strong base price support before the price starts moving higher again.
If the current price does not hold, Bitcoin may sell-off further into the $18,000 to $20,000 region. Hence, if you are a long term holder and bought in Bitcoin at a much lower price, there is nothing to worry about. Here is the chance to accumulate even more. However, if you are trading short term and bought in Bitcoin at a higher price, it may be wise to get out if the price drops further.
My long term outlook for cryptos, especially Bitcoin, is still very positive as inflation start rising and more big institutional players are getting into Bitcoin.
As always, invest safe.
So, what do you think after reading all that I have written? Let me know your thoughts in the comments section below!
** Above information is time sensitive. Please do your own due diligence before taking action.
This post here does not serve as an investment advice, and is not a recommendation to buy or sell. Please do your own due diligence before starting any form of investment. Use the content at your own risk. I do not own some of the pictures and screenshots taken from different source of websites, and the illustrations attached are purely for education purpose.