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Looking for some answers about when crypto will go up again? Check out this blog post for some insights!
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Reasons for the Dip
Cryptocurrency values have been dropping steadily since January 2018. At the beginning of January, the total market value of all cryptocurrencies was about $830 billion. Today, that number is around $260 billion. That’s a decrease of almost 70%. So, what’s causing this dip?
Lack of institutional investment
Right now, the vast majority of investment in cryptocurrency is coming from individual, retail investors. While there’s nothing wrong with that, it does mean that the market is more prone to volatility. When retail investors get scared or excited, they tend to buy or sell en masse, which can lead to sudden and dramatic swings in prices.
What the market needs right now is more institutional investment. That is, investment from banks, hedge funds, and other major financial players. These institutions have much deeper pockets than individual investors, and they’re much less likely to make knee-jerk reactions to news stories or rumors. If they start investing in cryptocurrency en masse, it will help to stabilize the market and make it more attractive to mainstream investors.
Negative news stories
One major reason for the recent dip in crypto prices is the negative news stories that have been circulating. These stories range from potential regulation by the US SEC to an all-out ban on crypto trading in China. While it’s still too early to tell how these stories will play out, they have definitely contributed to the market’s recent volatility.
Another reason for the dip is that many large investors have been cashing out of their positions. This includes both institutional investors and private individuals who have made a fortune off of the bull run this year. With so much money leaving the market, it’s no wonder prices have taken a hit.
Finally, another factor that has played a role in the recent dip is simply profit-taking. After such a tremendous run-up in prices, it’s only natural for some investors to want to take their money off the table. This selling pressure can further exacerbate downward price movements in an already volatile market.
Bitcoin futures
Bitcoin futures are financial contracts that allow investors to speculate on the future price of Bitcoin. Futures are traded on exchanges, and the prices are determined by the interaction of supply and demand. Bitcoin futures can be used to hedge against risk or to speculate on the future price of Bitcoin.
The launch of Bitcoin futures in December 2017 was a milestone for the cryptocurrency market. Futures contracts are traditionally used by institutional investors to manage risk, but the introduction of Bitcoin futures allowed retail investors to get exposure to Bitcoin without having to hold the underlying asset.
Since then, the price of Bitcoin has been volatile, and the introduction of other cryptocurrencies has created a more diverse market. Nevertheless, Bitcoin remains the dominant player in the space, and its future price movements will continue to generate interest from investors around the world.
When to Expect a Rise
After Bitcoin’s value rapidly decreased in 2018, many people are wondering when crypto will go up again. While it’s impossible to know for sure, there are a few factors that could contribute to a rise in the value of cryptocurrency. Let’s take a look at a few of them.
More institutional investment
The rise of cryptocurrency has been nothing short of meteoric. In just a few short years, digital currencies have gone from niche interest to global phenomenon. But what’s driving this explosive growth?
One of the biggest factors is institutional investment. More and more traditional financial institutions are beginning to invest in cryptocurrency, which is helping to legitimize the asset class and drive growth.
So when will crypto go up again? It’s impossible to say for sure, but we believe that institutional investment will continue to be a major driver of growth in the space.
Favorable news stories
Generally, when investors see more favorable news stories they will start to buy more of a certain cryptocurrency causing its price to rise.
Increased demand from buyers
When there is an increase in demand from buyers, prices will usually go up. If more people want to buy Bitcoin than there are coins available, the price will go up. When demand outweighs supply, it creates what’s called “FOMO” or Fear Of Missing Out. This can result in a price increase as people purchase Bitcoin before the price goes up even more.
How to Prepare for the Rise
It’s been a tough year for cryptocurrency. The prices of Bitcoin, Ethereum, and other altcoins have been on a steady decline since January. Many people have lost a lot of money and are wondering when the prices will start to go up again. There is no certain answer, but there are things you can do to prepare for the rise. Here are a few tips.
Build up your position
Even if you’re convinced that a certain coin is going to rise in value, don’t put all your eggs in one basket.Cryptocurrency is still a very volatile market, and anything can happen. So, it’s always smart to have a diversified portfolio.
If you do want to build up a position in a coin that you’re confident about, there are a few different strategies that you can use:
-Buy and hold: This strategy involves buying a cryptocurrency and holding onto it for the long term. The general idea is that if the coin does eventually rise in value, you will make a profit. Of course, this strategy requires patience and discipline, as you will need to resist the temptation to sell when the price starts to rise.
-Dollar-cost averaging: This strategy involves buying a fixed amount of a cryptocurrency on a regular basis, regardless of the price. The benefit of this approach is that it allows you to average out your costs — so if the price does eventually go up, you will have made a profit. Of course, this strategy also requires discipline, as you will need to stick to your buying schedule even when the price is low.
-Marché Buy Zone Strategy: This is an active trading strategy that seeks to take advantage of short-term price movements by buying and selling within a defined ‘buy zone’. The main benefit of this approach is that it can help you take profits more quickly than buy-and-hold or dollar-cost averaging alone. However, it does require more vigilance and attention than other strategies.
Monitor the news
When it comes to investments, it’s always important to stay up-to-date on the latest news. This is especially true when it comes to cryptocurrency, as the sector is highly volatile and news headlines can often have a direct impact on prices. By monitoring the news, you can get a better sense of which way the market is moving and make more informed investment decisions.
There are a few different ways to stay up-to-date on crypto news. One option is to follow crypto-specific news outlets, such as CoinDesk or Bitcoin Magazine. Alternatively, you can also set up Google Alerts for key terms related to cryptocurrency, such as “bitcoin price” or “ethereum news.” This way, you’ll receive an email notification whenever there’s new content published on the web that contains those terms.
Stay patient
The crypto markets are in a constant state of flux, and it can be difficult to predict when prices will rise or fall. However, there are some things you can do to prepare for the next bull market.
One of the most important things you can do is to stay patient. It’s natural to want to buy when prices are low and sell when they’re high, but this can often lead to losses if you don’t have a long-term investment strategy. If you’re patient and hold onto your coins during a bear market, you’ll be in a much better position to take advantage of the next bull run.
Another thing you can do is to diversify your portfolio. Don’t put all your eggs in one basket, so to speak. Invest in a variety of different coins so that you’re less exposed to individual price fluctuations. This will help mitigate your losses if one particular coin takes a nosedive.
Finally, make sure you have a plan for what you’ll do with your profits when the next bull market finally arrives. It can be tempting to cash out and spend your earnings frivolously, but this isn’t always the best idea. If you reinvest your profits back into the markets, you’ll be able to take advantage of compound growth and potentially make even more money in the long run.
If you follow these tips, you should be well-positioned for the next crypto bull market. Just remember to stay patient and have a plan for what you’ll do with your profits when it finally arrives!
