Every time there’s a crypto crash, or any crash whatsoever, investors fear that this is it, the end of days have come and we’re all doomed, pack your bags we’re about to become poor. But the reality is often different.
So much has happened the last few days, which put the crypto markets on violent moves with high volatility, the most recent news of FTT token and their rivals Binance trying to swoop in. But if history has taught us something, at the end of every storm, comes a sunny day.
Let’s talk about Ethereum, the last crash when it was all that Luna scandal it quickly dropped below the 1000$ mark, all the way to 800$. Everyone went berserk, lots of investors liquidated their positions and sold at a loss, which helped the price tumble to that point. But let’s not forget, what happened after that? A strong rebound happened that’s what it is.
Ethereum went all the way up to 1.800$ which in essence means money doubled, the smartest investors waited for things like this, panic, they thrive on it. So, seeing Ethereum at such a low price was a bargain for them, they went inside the sinking ship while all the others were swimming for the shore.
Past results are no guarantee for future results, is one of the quotes most traders use regarding their financial investments. And while this is a good way to stay afloat, let’s not get fooled about when the opportunity presents itself here. Look at Warren Buffet, he’s made a fortune betting on the market, while most of others fled. He’s now worth more just because he saw the opportunity, and he took it.
How will this play out for the crypto in the long run? I guess that’s a million dollar question no one can answer at the time, but we can shed some light into it. So here’s the thing, Luna was just a token when it burst out, a cryptocurrency gone bad. But in the case of FTX, it’s a large company with large investment volumes that’s going down. It affected the crypto market in such a negative way, it hit the market hard, all of the main cryptos are down by double digits.
If we look at this with theory, FTX crash should be bigger than that of Luna crash, because the stakes are higher, but we’re not seeing new lows? It just looks like the crypto market should endure more pain ahead, but if it doesn’t? It means the market is ready for a strong rebound sooner than expected. As always, stay steady and keep a cool head on these kind of markets.
