Last week, if you wanted to buy any cryptocurrency you would have been buying into an industry that was valued at over $2.5 trillion. Unless you bought Cardano, Nano, or one of the lower listed coins on the list this would have proven to be bad timing as at the time of writing the market cap is not too far away from being valued at $2 trillion. This means that since Musk’s tweet nearly $500 billion has been taken out of the market.
We always hear ‘buy the dip’ and for this bull cycle, you would be in profit every time you had done so. So, is this any different? Well, the thing that makes this dip more unique is that the extent of the dip can be largely contributed to one man, Elon Musk. This can make predicting what happens next tricky as there is no real precedent to help us out.
Many people within the crypto space are furious with Musk as his tweet came at a time where the market was building up some nice momentum and several altcoins were flying. There are those who believe that this will flush out all the weak hands and can potentially make the next rise a more stable one while there are obviously those that believe that this spells trouble for this entire bull cycle.
The next week will be one of the most substantial moments in this bull cycle. If the price refuses to drop below $40k and is able to quickly have high levels of buying volume, this could be very good for the crypto market in general, (excluding Bitcoin). Before the dip, several altcoins were flying in spite of Bitcoin taking off slightly. If Bitcoin were to recover and remain stable at the $47k level this could potentially be enough to make certain altcoins fly again.
Overall, this unprecedented sell-off could eventually be good news for altcoins but we need the panic to subside now and we need to one day this week witnessed a day that sees gains of 10% and then some stability for the entire market. This would allow the fear for many investors to go away and leave some room for many to profit.
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