It's the bear market...
Alright... here we are coming to the end of what's been probably one of the longest and most brutal weeks in crypto's history, and I know It can be very hard to focus on much else when your portfolio is looking the worse for wear. Many micro factors have combined leading us to this point. Inflation, pandemic, supply chain disruptions, China locking down, the ongoing war in Ukraine, terrible US CPI numbers, rate rising, CoinBase's first-quarter number, and last but not least the infamous de-pegging of LUNA-UST...
So, without trying to cover the blindingly obvious...it's the bear market we've been waiting for...
FUD is everywhere
I'm sure that anyone who's been around for a while has many "battle scars" and the recent crash is just a one. Of course, this is nothing new in the Bitcoin markets. However, it's the time when weak hands start coming out left and right spreading fear and FUD among the crowds. And from my humble experience, I can tell that despite how far Bitcoin has come, there are a lot (I mean a lot) of people who would like to see it fail. They would like to twist the truth and show that crypto was always doomed from the start. That way, they might feel less guilty about not getting into Bitcoin in those years when it was so cheap and when they were dismissing it. That's why we always see (especially at times like this) all kinds of naysayers cropping up here and there on TikTok and Twitter spreading fears and rumors. And unfortunately, sometimes they can push people out of the space. I have a friend who bought Ethereum near its 2017 top and capitulated in the 2020 covid-19 collapse at around $100 level. This is something that he constantly regrets and I don’t want you guys to be in the same position...
Keep looking at the long-term horizon...
Here is a little story. We all know CZ. He is the founder and the CEO of the largest crypto exchange- Binance, but what not everyone knows is that CZ had to sell his house in 2013 in order to buy Bitcoin and after he did Bitcoin crashed by -70%, and CZ lost about $700k. Crazy? Well, that was what everybody said at the time, but now this "crazy" is now the richest man in crypto with a wealth of $60B
All he has done is that he focused on what he believed is right, and when we have a mindset like this, we can see that these massive shakeouts in the market are part and parcel of the long-term crypto bull market. So, if the recent crash scares you about the future of crypto, please ask yourself this: how are the people who've been in crypto for a long time reacting to these rumors and to this market? I mean the likes of CZ, Vitalik Buterin, or even Elon Musk...
From where I'm standing, nothing has changed. Everyone who's working on Ethereum, Binance, Hive, AVAX.. etc are going on as usual.
History has taught us that Bitcoin can be sick sometimes, but it can't be dead. Crypto is not going to zero, it's just entering a painful phase of correction, but it will emerge stronger. Nobody said HOLDING is easy but it's the only way we should go if we want to ride the crypto revolution...
If your portfolio doesn't look that good, then just do yourself a favor. Close the charts, get a snack or go for a walk. There is nothing you can do now, so please don't beat yourself up. Where the market goes, keep calm and HOLD...
PS, Unless otherwise stated, all images in this post are either my own design or from free photo-sharing sites (e.g. pixabay.com)