The action over the last few days shows that there’s never a boring week at crypto!
In the span of a few days, bitcoin went from $9,000 to $11,300, dropped down to $9,600 within 5 hours, back up 10%, and crashed down to as low as $9,100 just 24 hours after hitting all-time high. Bitcoin ended the week back at near all-time high at around $11,000, representing an increase of 21% over the previous week.
Ether had a similar story – it went from $460 to as high as $515, crashing down to just under $400 a day later, and settle the week at $460, unchanged from a week ago.
Things got chaotic during the correction – OMG, NEO, and ETP crashed as much as 90% in minutes on Bitfinex and some margin traders were forced to liquidate their holdings at the lowest point. This shows that the crypto market is still immature and that it is very risky to trade on margin.
With the wave of newcomers into crypto, the overall cryptocurrency market cap is expected to continue its expansion. The question is, which coin will benefit from the money inflow?
We believe major currencies like bitcoin, ether or litecoin will be the winner for the short term, since most newcomers just buy what’s available on Coinbase. There is a steep learning curve for crypto and it will take a while before the newcomers branch out to other coins/tokens.
Don’t fall in love with your bags of alt(shit) coins – if you believe there are other better opportunities out there, don’t take too long to cut your losses.
