Today, there are many opinions and forecasts about what we can expect in the near future in the world of cryptocurrencies, and more specifically, this year.
Some experts predict that the cue ball will fall to “zero” (the price going below the $10K level is also considered as level 0).
The 99-year-old vice chairman of Berkshire Hathaway, for example, said shortly before his death that most cryptocurrency investments will become completely worthless and disappear. In my opinion, this is quite natural, because today, according to Coinmarketcap data, there are more than 2 million cryptocurrencies in operation, a significant part of which are absolutely unnecessary and do not carry any value, or are obsolete.
Other analysts predict Bitcoin will rise to $100K by the end of this year, starting its upward movement after the halving. Moreover, many experts from large companies and funds agree with this forecast.
Given the current upward trend and the overall bullish outlook from analysts, it is not surprising that many believe that 2024 will be a strong year for altcoins as well, with potential growth of 30-100x. Personally, my portfolio of 17 alts had already shown significant growth even before the cue ball halving, 7 coins of which had already given x2-x3 and I was able to lock in the invested funds. And this despite the fact that I do not buy various meme coins that show an increase of 2000% or more in a fairly short period of time. Therefore, even if there is a correction on alts now, for me personally this will be a signal for additional purchases.
Most of these positive predictions for cryptocurrencies are based on the assumption that the spot ETF will attract significant capital, as gold did in 2003. And indeed, this may be so, but we all need to understand that this will not happen in a few days or even months. This will take years.
Such an abundance of positive factors should be alarming, because The market has already included some positive events in the price, and the fact of their implementation, instead of the expected growth, may surprise you with a fall. Especially when there are more than enough sudden reasons for a decrease, for example, in the form of the collapse of some large crypto project (Terra in May 2022). Or tightening regulation of cryptocurrencies in the world. Or some large exchange will collapse (using the example of FTX, we already know how the market can react).
But don't despair! The crypto market has already experienced many major shocks. Bitcoin alone has been buried in the media hundreds of times. But we also shouldn’t forget about all possible risks, and crypto is a high-risk asset.
Therefore, the best strategy in the crypto market is to hope for the best and prepare for the worst. Proper distribution of your funds across portfolios (diversification) and adherence to discipline regarding limiting losses will help you with this. As you can see, there is always a way out.
