Last updated February, 2018
Now there’s another spate of selling happening, and investors with weak hands are selling, starting to send crypto markets down again.
If you look back at 2017, coming from December 2016 into January 2017, the market had gone from about 14 billion market cap, to about 21 billion. During the build up, everyone was touting that it was a bubble (everyone being mainstream media), and then in early January 2017, it plummeted back to $14 billion and change. That caused many people who had just bought into the market, amidst comments of Bitcoin being a bubble, to sell their positions – they were worried the bubble had popped, they were worried they had bought in at the top and they were just going to lose all their money.
However, if those people have held on until March 2017, they would have been back at, or above their positions, as the total cryptocurrency market cap had surpassed it’s previous high of $21 billion. Of course, this doesn’t include some of the smaller junk coins, but if you had bought into legitimate coins like Bitcoin and Ethereum, then all you would have had to do is hold on for 60 days and you would be back at break even point.
This is happening again this year – there’s volatility and uncertainty in the markets early in the year, and that has caused a 40% or so pullback in bitcoin, and a 30% market wide pullback in the overall cryptocurrency market caps.
My best suggestion is just to sit tight – the reasons and fundamentals that caused you to start investing in cryptocurrencies, or to start looking for the best mining gpu for your GPU mining rig build are still here, they’re still unchanged.
If you bought in to make a quick buck, and you’re panicking, well I’m sorry to hear that. That’s why I always advocate that you invest for the long term, and only put in money you can afford to lose. Why? Not necessarily because I think it will all go to $0, but more because if you can afford to lose it, that few hundred or few thousand dollars, then you will be less likely to worry, panic, stress-out during volatility and sell your cryptos when I believe there are still massive gains to be made in this space!
Need a visual? Check out this graphic of the cryptocurrency market as a whole, from CoinMarketCap.com
Now that we’re zoomed out, now that we can see where the crypto market has gone, the pullback in January 2017 is barely even noticeable! And yet, at the time, the market pulled back 30%! Back in June of 2017 there was another huge pullback, and again in late July 2017, and yet, on the graph, they are all just small little blips.
Keep your perspective, hold your positions (hodl if you want to be super-fancy crypto geeks 🙂 ), and have fun – 2018 will be an interesting year for blockchain technologies!