The constant fall and the bearish behavior of crypto markets have worried a lot of investors. The other day, BTC was trading again close to $29,000 and Jason Brink, President of Blockchain of Gala took YouTube to educate the crypto investors and affirm them for a better future in the market.
Talking to Altcoin YouTube channel Jason went on to elaborate on the importance of self-policing in the crypto market. Sounding worried about the government regulation in the crypto market, Jason firmly stated that crypto investments is about the freedom of investors.
It’s a free market and that’s why it is going to have major ups and downs but if that creates panic in the market and attracts some government regulations on the cryptocurrencies, it would be a more terrible thing to happen.
Extreme Fear and Greed is Gripping the Market!
Jason suggested involving emotions of fear and greed in the market and told the viewers that it’s not how the market works. He said that he is not at all worried about the bearish run of the market as such things keep happening but if people develop a panic about it and investors start pulling out all their money or demand regulations, that would hurt the market more.
The structure of 2022 is similar to that of 2018
By late November 2018, BTC had lost 80% of its value and was trading at around $3,000, with a market worth of roughly $200 billion. However, if you look closely, Bitcoin also followed a similar trajectory in the first quarter of 2022. It made a lower low around $30,000, a higher low at $33,000, and a brief rally that culminated in a test of the 200-day MA. Following the denial, it plummeted to $27K this month.
In a down market, there is a survival strategy.
Talking about how to survive in a bearish market, Jason said that there is never going to be a way out of it if we panic as an investor. Sharing his personal experience, Jason said that he was in deep trouble when he lost his $500 during the first bearish run in the market which he experienced but nothing helped except patience. Freaking out in the initial bearish run of the market could be dangerous for all the investors.
Effects Of Bear Market On Ethereum
While Ethereum’s long-term fundamental outlook is bright, the second-largest cryptocurrency has not been immune to the bear market’s effects.
On the question of Bitcoin or Ethereum, Jason expressed his view saying that anytime soon, unless there is any black swan event, Bitcoin is not going to get any flip considering its dominant position in the market.
However, Jason seemed a little concerned about the usability of Ethereum and said that even though he loves Ethereum, some misaligned incentives and lack of corrective measures could see this popular coin get a flip. This view from the president of Gala also makes Bitcoin look like a better investment opportunity than Ethereum.
All because the value of Ethereum has dropped by 30% since the beginning of May. At $2,000, the currency has almost reached psychological support. ETH was trading at $2,032 at the time of writing, down 16% in the last seven days and 58 % from its all-time high in November.
Given the aforementioned circumstances, the value of ETH in terms of BTC is expected to fall to roughly 0.04 in the coming quarter. There’s a potential that the pair will drop even lower to the lowest point (0.02) seen during the bear market in September 2019.
Practically it should bounce near the bottom of the channel, regaining bullishness heading into 2023, and hit the 0.08-0.1 area in Q1 2023. (as per the industry data).
The best way to navigate the market is to be prepared for any situation. Given the aforementioned potential, it is smart to invest all new funds in Bitcoin in the future months, as experts recommend.