For most people, this is their first big crypto market downturn. First, I'm sorry, but this high variance is why everyone loves these assets. They're not Union Pacific, not Stores of Value. They move. Just as much down as up.
The question you're asking is: Why?
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The question you're asking is: Why?
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Be wary of anyone who has an explanation. Disregard everyone who finds easy answers in charts. Ignore idiots with undergrad econ degrees who try to pass themselves as experts. And definitely let the trader/loser crowd inhabit basements, where they periodically get wiped/rekt.
The bottom line is that no one actually knows the causal relationships. Was it worries about Tether's solvency? Was it something else? Frankly, no one knows, and much more crucially, it's not important. These conditions never repeat themselves.
Even if someone were to present you with a plausible explanation, **as well as definitive proof for that explanation**, it wouldn't be useful, because markets are very complex and the chances of us encountering this condition again are zero.
Almost the entirety of all prices are based on speculation. It's all those idiots who rushed in at the same time, who are rushing out at the same time. We have seen the problem, and it's us.
What matters now is what your reaction ought to be.
What matters now is what your reaction ought to be.
Should you sell everything? Or HODL like all the daytraders told you to do (while they dumped their holdings onto you)?
Don't do either of these things. I know many of you are doing both, as we can see it in the price. They are all equally dumb.
Don't do either of these things. I know many of you are doing both, as we can see it in the price. They are all equally dumb.
You should only invest in and hold coins which you believe will be used, extensively, in the long run. If you bought coins on a whim, without an investment thesis, based on hype, well, they are pure speculation.
When the entire field is red, we have an information flow problem. Not all of these coins share the same fate. They are not all on the same trajectory. If their prices are moving in tandem, there's something wrong with how people equate them to each other.
This is a time to revisit your investment theses. If you cannot answer the question of "who would desperately want to acquire this coin in the future, and for what purpose," then it's worth re-thinking your position.
If the coin isn't fully operational, if there's a gap between the coin as it is now and how it is supposed to operate in the future, you should ask many more questions, like a VC. Can the team take it there? Is there a feasibility study? Are there technical or UX problems? etc
At the end of the day, cryptoassets are just like every other asset. You need to have a firm investment thesis, and you should reevaluate it as more information becomes available.
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I did thread everything on the Android Twitter client, but somehow it failed to get it right. Sorry this is not as convenient.
