It is very easy to just look at the cryptomarkets and wonder if this is the end. But, sometimes it can actually give comfort to see that the world of cryptocurriences is actually a part of a larger financial picture in which normal companies are included. Because, it might be that normal companies don't drop 20% in a day (and it still feels quite normal), but if we look at the last day, it is interesting to see that Tesla has dropped more than 9% in value and a giant company like Amazon has dropped 5% in value.
Above you can see an image presenting how the stock markets are doing at the moment. There are not many green areas in the chart, and this should help us understand that the markets in general are falling, and this is really influencing the crypto markets as well.
It is also important to understand that the Anchor Protocol trouble in which the "stablecoin" UST suddenly dropped in value and it actually dropped to $0.67 at the bottom. That is quite crazy for a coin that is supposed to be pegged to the Dollar and for those who thought their money were safe and worth 1 USD per UST.
Since then, the Anchor team has worked hard to solve the trouble and currently the value of one UST is $0.9. That is still quite far from $1, but it is getting closer. If the team has everything under control, I do believe they will manage to get it back on track and to its original value quite soon.
In the midst of this, I keep asking myself... when should I invest more? Is this the time? Or are we going to enter further into a longer lasting bear market that will last for much longer? I have no clue, and this is not at all my specialty, so I don't know what to say. I wish I would know.
What do you think? Are you expecting a long-lasting bear market?
Timing any market is notoriously difficult. You sometimes thinking you are buying low, only to watch the market fall further. Better to identify some projects you really like the look of and accumulate patiently with a longer term view.
That's probably the best advice you can give a retail investor.
That for sure sounds like a good piece of advice!
I think the average bear market in stock is 9 months, so that's a ballpark figure if we are in a bear market. Which probably we aren't.
Crypto only goes up though I thought.
Curious to see what the future will bring, how much the current dip was caused by the average stock market and the TERRA incidence... and how much is just pure speculation and bearish tendencies.
In an accumulation phase, a bear market and lower prices are a god-send! :)