There are two important factors that many new investors in cryptocurrency forget or simply don't know. These are things that take time for someone to get used to and honestly some never get used to it and end up missing out.
1 The markets are open 24/7 and traded worldwide
- This is unique unlike any other asset such as stocks which have a limited trading window cryptocurrency constantly flows from country to country 24 hours a day and even on the weekends!
2 Corrections are fast and large
- Unlike stock market correction which can last days or even months crypto corrections are normally fast and brutal. Often times the last 1-3 hours and can wildly swing 10% or more.
After days of or one could say months of hype, speculation and just flat out no reason for crypto to be going up we came crashing down today. I say crashing but honestly a 10% correction is not that large. Ethereum is still holding on to gains compared to others.
I had a strong feeling we where not yet ready for a 2.5 trillion dollar market cap. The last few months have honestly been built off of hype, talking up cryptos and so forth while nothing really has changed. They are no faster, they are not being bought up more and then for sure are not offering anything new right now. In fact that fees are stupid high and it's preventing yet again a lot of use cases from launching.
Bitcoin has been struggling to reach all new highs again while Ethereum starts to take the show and well Doge. Sure if people want to pump it by all means I'm more than happy to sell it to you lol
I don't see us hitting new highs any time soon. There's just a lack of hype for right now moving forward and the main two cryptos Bitcoin and Ethereum are having major growth pain issues yet again that ultimately resemble what happened in 2017 where high fees and long transaction times crushed growth and stagnated the entire system.
It either takes months or simply never happens for many of the use cases that use Bitcoin or Ethereum to build side projects or chains to help combat the high fees but there are some new blockchains that offer amazing results compared to what we had in 2017. I see money flowing into these and for them to be powerhouses over the next few months while the others such as Bitcoin and Ethereum stagnate.
Now what I mean by stagnate would be Bitcoin wildly swinging between $45,000 - $60,000 but never really pushing to new highs.
Ethereum could possibly continue to rally based on speculation of what is to come but we are still nearly a year away from any of that taking place. Lets also not forget Ethereum said they where working on this in 2017 and here we are today four years later with the same issues so my thoughts of it actually happening any time soon are pretty low.
I still feel like we are due for a heavier correction since the markets as of the last few months have only been pumped from speculation, hype and influencers. But then again those same things are what drive adoption and more people using crypto thus increasing the price and usage.
What do you think?
Will crypto markets rally quickly? stagnate till use cases and development and lower fees happen? or move towards a harder sell off?
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