With the new year already a month in, its only instinctive to believe that there’s new highs for crypto, or so i thought. But sadly, my crypto portfolio is way down then what it was last year. Thanks to china’s crackdown on miners and just all out banning them, crypto currencies have seen a massive dip over the past couple of months. furthermore investors are even choosing to pull out all those gains from Bitcoin, Etherum, Dogecoin ,Solana etc. into smaller blockchain projects that have potential to generate even more profits.
And because of this, It just seems that we get one good pump and then its a month of dumps. In just one month bitcoin has managed to drop more then 10% around 5k of its value. But don’t think Etherum is any better in fact, its worse. Etherum has dropped 20% in just a month knocking off $800 in value.
And if the big dogs of crypto are suffering you can bet your life savings that the little guy is suffering too. Now i know what your gonna say. “Buy the dip! it wont be as cheap once it sets off.” And yes your right we might never see cryptos reach these lows again. And of course being the hopeful crypto naught that i am I’ve bought into a couple of cryptos that i think have potential, however buying the dip and then waking up to see that the dip you bought just got bigger isn’t exactly a morale booster.
Now i could be getting ahead of myself and this whole recession could just be a consolidation period. And once its over we could be looking at new highs. But bears on any of these tokens, even the highest-quality cryptocurrencies have historically been vicious declines. Predicting exactly what the bottom could potentially be for these tokens is a dangerous and enduring task. like myself and others, many simply choose to sit out the crypto game, waiting on the risk-adjusted returns of this sector to come back.