March 12th was certainly one of Bitcoin’s worst days in its decade-long history; the Thursday 40% loss was only 2nd to the BTC price collapse in the wake of the collapse of Mt. Gox, who were the biggest and most prominent crypto exchange then.
Unsurprisingly, many crypto investors were caught off-guard during this shocking crash, with BitMEX exchange reporting that nearly $1 billion worth of BTC majority long positions on their exchange were liquidated.
What Happens Next?
In the wake of the devastating BTC crash last week, some would take this as an opportunity to buy and hold until the market trend reverses, while others have just panicked and sold their portfolios.
Crypto lovers and believers are likely to ‘buy the dip’ while others will panic and dump their crypto assets. In fact, there is evidence of market-makers on certain exchanges having dumped all their positions, meaning there is no buy-side demand to support BTC.
Texas West Capital trader and crypto analyst Scott Melker has a grim prediction following Thursday’s bloodbath across the broader crypto market.
In a series of tweets, Melker warns that the worst is yet to come amid a global market ripple effect induced by fears of the coronavirus.
While Melker expects global economic disruption to tear down the young crypto industry, he predicts that BTC, the world’s first and largest crypto by market cap, will certainly survive.
However, the recent crash happens to be a very controversial market revision until trading takes a certain direction or correction upwards with steady support and momentum.
Is this the Best Time to Buy or Sell crypto
Cryptocurrency analysts are trying to re-calibrate amidst a massive and widespread market crash, with some giving pretty sound advice on whether to buy BTC.
For instance, Strategist Josh Rager believes it’s too risky to try to time the bottom in the current climate and that it would be wiser to buy late at higher prices than be underwater. He added that he’s not buying as BTC still has more room to fall.
The analysts seem to agree that this isn’t the right time to buy BTC and other cryptos until prices recover, as they foresee further turmoil in the crypto space until at least the worst of the coronavirus is over.
Thus, according to this group of analysts, prudent action while purchasing and long-term holding remains the best investment strategy.
The Case for Buying BTC and Altcoins
On the other hand, while traders and analysts are trying to figure out whether or not Bitcoin has already bottomed out, crypto analyst Edward Snowden says that he “felt like buying bitcoin” amidst the crash on Thursday.
He explained that panic and fear rather than fundamentals mostly triggered the price drop across the crypto markets.
Digital Currency Group founder Barry Silbert, for instance, claimed on Twitter that he is definitely buying BTC, explaining that this is why digital assets were invented.
Meanwhile, Francis Pouliot, the founder of Bull Bitcoin, said that he noticed a lot more buying than usual during the market rout. Pouliot wrote:
“People are most definitely FOMO buying the Bitcoin dip at the OTC level. Twice more transactions from buyers than sellers.”
Judging from these analysts, it would seem that buying the dip could be a wise investment move, as you could then hold on to your portfolios and wait for the prices to rebound.
Moreover, although the Bitcoin sell-off has been largely reflected across the top ten crypto assets, some digital assets such as Ethereum Classic, IOTA, and OKB have reflected significant gains amidst the recent market crash as per data from CoinMarketCap at the time of writing.
This makes them prime altcoins to invest in at this current point where crypto markets are reeling amidst a major global economic crash.