Fairytale Ending As Bitcoin Proves ‘Normal?’
Even those who don’t understand blockchain are training their gaze on the world of cryptocurrency.
Cryptocurrency continued to fall midweek with world-leading Bitcoin crashing to half its all-time high. The vanguard of crypto fell to the $37,000 level Wednesday. This was in line with the overall stock market that experienced sharp losses across all major indexes for a second day.
So why all the interest — and fear for those heavily invested in crypto — about this asset declining rapidly? Isn’t this all part of “normal” trading in the markets?
The answer is, “yes,” but that’s little consolation to traders who jumped into crypto after it’s rapid run up had already begun on the way to $64,000 earlier this year.
There is no cryptocurrency that is the “golden” solution to one-time trading for a fast fortune... not even Bitcoin. At this point, Bitcoin appears as “normal” as any other asset vulnerable to the ebbing and flowing of the markets.
Veteran traders know that anything that goes up will come down.
Many in the Bitcoin fandom community seem confused about this market movement reality. But this is “normal” behavior for an asset in the markets. What could be considered “not normal” would be a constant skyrocketing of an asset where everyone makes money all the way up to infinity.
Digitized currency — cryptocurrency — may be difficult to comprehend at times, but one thing it is not is the fairytale pot of gold at the end of a trader’s dreamy rainbow.
Just like trading any asset in the market, tracking Bitcoin is not about charting the future of Bitcoin, it’s about charting the emotions of everybody holding Bitcoin in their portfolio.
From a psychological point of view, when you get a bunch of nervous people who may have bought the top using leverage during the run up, they’re afraid of getting blown out with a sharp pullback.
This recent market action isn’t about whether Bitcoin is “good or bad,” this is about “normal” market movement that can flush out people who missed market changes signaling what was ahead.
Whether good or bad for a particular trader, cryptocurrency and Bitcoin are likely normal topics in trading for years to come.
We Saw: Another down day across all major indexes —
- Emotional selling stirred by tech, crypto concerns
- Crypto downward crunch brews questions of longevity
- Hint of changes to “easy Fed policies” as economy heats up
We’re Watching: Strong buy zone signals in key tickers —
- Liquid stocks with iron fly potential
- For continued earnings trade possibilities
- Catching flushes before turning eyes upward