An ongoing Bitcoin Price crash continued over the weekend, with the crypto falling to a 2-month low of $42,000, last seen in October. Ethereum, Cardano, Dogecoin, Solana are amongst other cryptocurrencies seeing similar losses.
Republicworld.com estimates that the entire cryptocurrency market capitalization fell all the way to $2.07 Trillion on Saturday, after breaching the 3 Trillion mark just last month. This follows a global downturn in Wall Street stocks which spilled over into the crypto markets.
Investor pessimism now pervades global markets, with the biggest fears coming from a resurgence of COVID cases in the US, the UK, the Asia Pacific, amongst a growing list of countries.
The uncertainty in the markets follows a recent announcement of the COVID-19 Omicron Variant, whose exact severity is yet to be determined. Vaccine development for the strain is already underway, despite their exact efficacy against the emergent strain yet to be determined.
These COVID-19 events precipitated a stocks and securities pull-back in Wall Street, as institutional and retail investors are shifting their holdings away from riskier assets like tech stocks and cryptocurrencies, into safe-haven assets like fixed-income securities, currencies, silver, or gold. Besides, the majority of investors are taking the chance to lock in their gains, as the year draws to a close.
Chief Marketer at AvaTrade, Naeem Aslam says that the current dip in the process of crypto provides ripe opportunities to buy, for investors and traders who believe in the long-term potential of the cryptocurrencies.
Ardent Solana supporters like DeVere CEO Nigel Green take this claim further by saying it’s the best time to buy the SOL token. He believes that the token will eventually outperform both BTC and ETH, the main reasons being Solana’s superior ecosystem, with highly advanced technology and its overall cost-effectiveness.
‘Solana is a blockchain platform that has faster transaction speeds, processing more than 2500 transactions a second, compared to its main rival Ether’s 15 per second, and at a lower cost and without compromising on the blockchain’s decentralization.’
Solana is poised for success because sophisticated traders typically prefer the central limit order book model compared to the AMM model offered on UniSwap and pioneered on the ETH network.
Green further states that;
‘This revolutionary technology will ultimately change the way almost all business activities and financial services are delivered in the future. As such, a growing number of decentralized finance (DeFi) applications are moving into Solana.’
Whether a cryptocurrency investor or not, everybody should understand that volatility is part and parcel of the cryptocurrency industry. This will continue to be true until such a time as the network is mature enough not to be swayed by any sell-offs driven by panic.
Bearing this Bitcoin Price crash into account, this might be an excellent opportunity to bu into the dip. For long-term investors, the best bet is to hold on to your position and wait for the prices to recover.