The sell-off wave that started in Asia in particular created a global domino effect and triggered each other in the form of panic sales
However, Israel's aggressive stance in the Middle East and the increasing Trump-Harris uncertainty in the US presidential race were among the factors that triggered investors to sell
The increases in the US unemployment rate revealed in the data released last week, the 8% decline in the Japanese Yen as of the beginning of the week, and the search for balance in global risk and prices caused a red start in all world markets
How Can Users Benefit from Market Cycles?
Understanding that markets are cyclical - and managing your portfolio to account for downward phases - can help ensure that you are not caught off guard
Although we all want our assets to only increase in price, market cycles are ultimately inevitable
During this period, even good news can have a hard time pulling an asset out of a downtrend as participants adopt a cautious approach to avoid losses in the current harsh market climate
However, there is light at the end of the tunnel, because markdown phases do not last forever. This phase usually ends with a new crypto market cycle. What’s around the corner could be another formative phase.
Be optimistic.
In such cases, the public narrative quickly and drastically turns negative.
Five Strategies to Navigate and Thrive in a Crypto Market Downturn
1. Take Profit Early
2. Wait and Observe Optimum Entry Points:
3. Avoid Impulsive Buying.
4. Protect Alternative Sources of Income.
5. Accept Losses as Part of the Learning Process.
Investors can better manage market declines by adopting these strategies.
The bearish phase is a short seller's dream
