As 2024 draws to a close, the cryptocurrency market continues to experience notable fluctuations. One of the prominent developments is the decline of XRP, as this index has dropped 3% in just the past 24 hours, leading the downward trend among major cryptocurrencies. This decline coincides with Bitcoin (BTC) also having decreased by 1.5%.
This occurs against the backdrop of a lively festival week, highlighted by the announcement from the Japanese company Metaplanet regarding its record purchase of 619.70 BTC for 9.5 billion yen (equivalent to 61 million USD), increasing the amount of BTC held by the company to 54%. Not only Bitcoin, but many other cryptocurrencies such as ether (ETH), Cardano (ADA), Solana (SOL), and dogecoin (DOGE) have also decreased by up to 2%, while Chainlink (LINK) and Tron (TRX) recorded slight gains. The CoinDesk 20 (CD20) index has overall decreased by 1.39%.
Metaplanet has accumulated a total of 1,762 BTC for 20.87 billion yen (equivalent to 133.2 million USD) and has achieved an impressive BTC yield of 309.82% in recent months. Market experts are expressing caution, suggesting that recent price drops could be due to profit-taking after a year of strong growth and the outlook for declines during the holiday season, with a potential for deeper corrections if the stock market continues to weaken.
Retail investors often tend to jump into the Bitcoin market only after the price reaches significant milestones, such as 100,000 USD, driven by excitement and a sense of missing out (FOMO). As the holiday season approaches, many may seek advice on investing in cryptocurrencies, prompting those with some knowledge to share their insights.
It is important to note that you are not a financial expert and every investment decision is your personal responsibility. The author suggests providing context about the current market cycle, which is nearing its peak after two years of strong growth, while recommending a cautious investment strategy. Chris Burniske advises a diversified approach, prioritizing Bitcoin, Ether, and Solana, while limiting exposure to risky altcoins.
Timing the exit from the market is a challenge, and although some speculate about a "super cycle" with potential continuous growth, reality shows that significant declines can also occur. Emphasizing the importance of taking profits and avoiding reinvestment at peak levels can help new investors avoid potential pitfalls in their cryptocurrency journey.
