With so much that has been going on, regarding the global crypto crisis, it is hard to imagine anyone claiming that all is well. However, that is exactly what some digital asset experts are saying, as they urge investors to remain calm.
Ryan Sean Adams and David Hoffman, hosts of the popular crypto podcast Bankless, recently told listeners to “Grab your conviction, and stay with it.” What this means is, despite the dire outlook in crypto markets these days, the right thing to do is to choose an investment option and remain steadfast through all the up and downs.
If talk on the streets is anything to go by, it would seem that a lot of people are beginning to think that way as well. It is easier said than done, however, especially considering how bad things have been lately. Bitcoin, for example, has dropped 29%, and its closest competitor, Ethereum, has also lost 38% on the markets.
Anonymous Investor Loses Billions
With all this negative news, it is very difficult to heed such advice from people who are claiming that everything is fine. To make things worse, this past week, people were shocked by the news of one anonymous Bitcoin investor who is said to have lost billions of dollars, since the value of the currency has been declining.
According to news reports, Bitcoin’s richest trader in the world lost a whopping $ 6 billion in just a couple of months due to the sudden dip in the value of the cryptocurrency. The value of Bitcoin fell from a high of $70,000 in November last year, to its current value of around $21,000 per coin.
This has obviously been a bad time for all the 16% of Americans who are crypto investors, however, one cannot help but feel sorry for whoever that individual is who lost so much in such a short space of time.
It’s Not Just Crypto
While a lot of the negative sentiments being shared have been focused on cryptocurrencies, it should be noted that it is not just digital assets that are suffering. In fact, it seems that crypto is behaving exactly like other assets, which further highlights the global economic crisis that is looming.
Netflix, for example, has been having a torrid time over the past few months. The streaming giant saw the value of its stock plummet by 40% in a single day in April! This was in response to the sudden decrease in the number of new subscriptions which highly affected investor confidence.
This is just one example of many such historically reliable investment options that are suddenly finding the going tough as they try to negotiate the sudden economic downturn. The CEO of crypto venture fund Outlier Ventures, Jamie Burke, even went as far as drawing parallels between Bitcoin and regular stock by claiming that the lines between the two are now virtually non-existent.
He went on to say that, although in many ways similar, Crypto differs from regular stock in that it seems to be greatly affected by global news while the latter is a lot more resilient. Therefore, any piece of good news, for example, an end to Russia’s invasion of Ukraine, would result in a sudden boost in the value of crypto.
This Has Happened Before
Those who have been in the crypto industry for years are a lot less fazed by the current crisis than new investors. This is because, in 2018, something a lot similar to what we are experiencing now happened. There was another so-called global crypto crash, and just like now, many predicted that it would spell the end of cryptocurrency.
However, Bitcoin and all the rest managed to weather that particular storm and emerged from it much stronger than before. If that is the case again this time, then surely a lot of patience is required, and in the end, those investors that remained resilient will be rewarded when the market picks up again.
A lot of advice has been thrown about recently, regarding what investors should or shouldn’t do, with some people even going as far as suggesting that this is the end of digital assets as we know them. Only one thing is clear though, and that is the crypto crisis is far from over.
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