While not trading and managing assets by ourselves, we at Evercode are closely monitoring the industry landscape and prices. Our team builds crypto solutions for companies, thus, we want crypto to preserve value. That is why negative price dynamics is a serious concern for us as well. What is happening?
Some Reasons to Mention
- First, as Time stresses, BTC and other digital assets are still a part of the global financial market. It is a very specific part, however, it is still interconnected with the rest of the market. As a result, such issues as political instability, ‘inflation, supply chain issues, and oil prices’ are affecting the price.
- Second, digital assets are known for their inherent volatility. Some experts even state that this volatility is a feature, not a bug.
- Third, privacy and security issues – together with the growing regulation of crypto – give birth to uncertainty.
- Finally, the recent problems associated with TerraUSD and Luna have also made a negative impact on the crypto prices. Some people even call it a “Lehman Brothers” moment for the market.
Crypto: What Now?
What should investors do under these circumstances of a crypto winter, including those companies who are using the crypto solutions we at Evercode Lab have built?
First of all, even though it might look like a full-fledged crypto winter – or even a crypto ice age – LA Times, among other things, cites the following opinion: ‘Though there are potential catalysts, there doesn’t seem to be a systematic risk.’
Second, it is time to be cautious. As Motley Fool recommends, right now, one should view crypto as a long-term investment. It is now a convenient way to get rich instantly. Correspondingly, one needs to examine the following factors:
- Is your outlook a long-term one?
- What is your current financial situation, do you urgently need to cash out?
- Are you ready to tolerate risks, what is the amount of assets you are ready to expose to a risk?
