For the past few years, cryptocurrency has been at its peak. Many traders benefited from it and some of them use this opportunity to become the source of their income. But as the years passed and as the economy continued to heal from the pandemic, the crypto market started to change. For the previous weeks, cryptocurrency experiences market downturn.
In the website of Cointelegram last August 05, 2024, they mentioned the sudden down surge of the two biggest crypto in the market: the BITCOIN and the ETH. The reason behind this down surge is the YEN-DOLLAR exchange. Many traders notice the market is slowly changing and due to that, they bought YEN and waited the right time to buy DOLLARS. This only proves that Dollars have a huge effect on BITCOIN and ETH.
Due to this phenomenon, this only shows that cryptocurrency are volatile, same as stated by Niamh Rowe (2024) at the website of Fortune Crypto. In his article, he mentioned that sentiments give massive effect to the price swing of the crypto. Due to this, many traders liquify their assets.
So the question is, is this a good thing or a bad thing? The answer is both. It is a good thing for new traders because they will have an opportunity to buy crypto assets at low costs. On the other hand, it is a bad thing if traders notice the market downturn late.
So what is the best strategy for this? Here are the three things you can consider if there will be a market downturn in cryptocurrency:
Make research about the best cryptocurrency that has the potential to grow and become big while there is a downturn.
Save what you can save. Observe the market. If it is continuously going down and it cuts your loss limit, then it's time to liquidate it.
Always be updated. News can be a very big help during these times because it broadcasts the happenings all around the cryptocurrency world.
And that's it. Even if it is in the downturn today, cryptocurrency can still go back to it's previous all time high. We never know, so stay updated.
