Recently, Bitcoin’s price slipped to $6,000, pulling most of the altcoins down with it. Some experts see a “bear flag” in the downward-spiraling charts and predict an even greater drawdown, which is causing a wave of concerns among market participants. Is this decline in the prices of digital assets as terrible as many think?
The Light at the End of the Tunnel
There is no need to panic according to Dmitry Filatov, the founder of MATRIX CIB, a financial services firm offering crypto investment business and consulting services. Speaking exclusively to NullTX, Filatov expressed his unwavering confidence that the current market conditions will pass, as similar conditions have in the past. Borrowing from his experience in dealing with crypto investors, he remains confident that the downward spiral has done little to shake the belief of crypto investors.
First of all, it should be noted that among the potential and current MATRIX CIB’s investors, the drop in the price of Bitcoin did not cause much anxiety. We see this as a good sign: after the explosive period of investments in mining equipment and participation in dubious ICOs in 2017, a period of strategic approach and calm, thoughtful asset management is coming. This is evidenced by the fact that in meetings with potential clients we increasingly see large fiat investors. This signals the market’s desire to become more understandable and, as a result, more transparent. Also, seeing miners that want to preserve and grow their earned cryptocurrency among our clients is a promising trend.
The current price movement is normal and signals a healthy market. It’s the absence of such market movements that should worry the crypto community, Filatov noted.
In the meanwhile, the reasons for the price decline are obvious. No normal financial process goes without correction; thus, its absence would rather cause more questions by the experienced market participants than what we have now. By looking at the Bitcoin price charts it becomes visible that the pendulum finds its balance and, despite the current drawdown, keeps the overall positive trend.
Those who are having sleepless nights due to the plummeting prices do not take time to build working strategies, Filatov pointed out. These are people who are more concerned with predictions and signs, ignoring the essence of cryptocurrencies. He is also certain that the price of Bitcoin and most other cryptos will stabilize over time as institutional capital flows in.
In his interactions with crypto investors, Filatov has encountered two types of individuals. The first group, which is the majority, is made up of people who just want to see stable price growth. This group is least at ease during volatile times like the present. However, there is a second group that thrives in the volatility. This group is mainly made up of people who have some experience in trading and play a great part in maintaining the market momentum when the rest of the market is jittery.
Filatov has some advice for traders: avoid switching between investment strategies. While this tactic may succeed at first, the results are usually disastrous.
Most importantly, the thing that we do not advise doing during the market correction is to jump from one investment strategy to another. We often see how investors, whose predictions come true once or even several times, begin to buy or sell assets “manually.” Any chaotic strategy not based on mathematical analysis often leads to a complete loss of the entire cryptocurrency portfolio.