The CoinSpeech team has collected significant insights from a recent analysis by CryptosRUs. In his latest video, he delves deep into the sharp fluctuations occurring in the crypto market. For those keen on gaining a thorough understanding of the dynamics at play, you can find CryptosRUs’s new video below.
Bitcoin Holds Steady but Alts Bleed
“Bitcoin is below 65,000 but more importantly, the alts are absolutely taking a beating right now,” states CryptosRUs, emphasizing the sharp decline in altcoin valuations. Some alts like Stacks, Jub, and Fetch AI have witnessed double-digit percentage drops, signaling a broader market distress. Bitcoin dominance has raised near 55%, indicating a shift of investments from alts back to Bitcoin.
Reasons Behind the Bloodbath
- Market Liquidations: Over $300 million in long positions have been liquidated recently, affecting both Bitcoin and alts. “Partly the reason why alts are not doing so well is because there are a lot of Longs getting liquidated right now.”
- Wall Street Sell-Off: Significant Bitcoin withdrawals by Wall Street are contributing to the sell-off. “Since last week’s FOMC meeting, $726 million has been sold,” CryptosRUs adds.
- Miners’ Capitulation: High hash rate and increased operational costs have forced some miners to sell off their Bitcoin holdings. “Some miners are capitulating because they really can’t withstand the high hash rate, the high difficulty, and the double the cost.”
Zooming Out
Despite short-term volatility, CryptosRUs encourages long-term perspective. “When in doubt, zoom out,” he advises. Citing the cyclical nature of the market, he states, “We have seen many dips due to fearful market news, liquidations, and whales manipulating the market. But this is temporary. The longer you hold, the more money you make.”
Historical Patterns and Future Prospects
The current sell-off aligns with past market patterns, particularly mirroring the choppiness of earlier cycles. “2017 saw a very similar situation right before a huge leg up. In fact, every single cycle shows a similar trend,” he notes.
CryptosRUs remains optimistic about a market rebound, especially with institutional participation. “When institutions, banks, fintech companies really feel FOMO and Euphoria, that’s when we’re going to see price levels we have never, ever seen.”
Ethereum and Altcoins – A Market on Sale
The market downturn should be viewed as an opportunity for savvy investors. “Even if it does happen, it’s not the end of the world,” he says about potential falls. CryptosRUs emphasizes the concept of buying the dip, as he believes alts will recover strongly.
Current Market Sentiment
Though the current sentiment appears negative, CryptosRUs reassures that this is part of a regular cycle. “Nothing we have done so far hasn’t been seen within the last three months and certainly has been seen in prior cycles. We have seen many, many, many times like this where it’s very fearful.”
On a positive note, CryptosRUs mentions new developments like tether’s stable coin backed by gold and Coinbase’s expanding functionality, albeit not in the US market.
Catch the detailed analysis and market commentary by watching CryptosRUs’s video below: