Bitcoin after its recent fast movement hit 60k and bounced back to 62, then tried again but bounced a little lower.
Although the move was quite sharp, the cryptocurrency market is famous for both this level of volatility and the recovery after it. But here's the question:
If so, why is Bitcoin coming back and alts going lower?
The same $TON almost touched the "5.1" mark today.
The one I mentioned earlier $FLUX has almost reached its minimum since its listing on futures.
$BTC It is often considered as "digital gold", and those investors who have not switched to regular gold use Bitcoin as a 'shelter in times of storms', in turn, repeated bounces from 60k only add confidence to the asset.
So about what happened: Money left alts and went to a place that was more 'safe' for them. Be it gold, bitcoin, stablecoins, or maybe even oil...
Why did this happen: And here we come to the term "risk appetite".
Investors are willing to risk their capital to make a profit, the more risk they are willing to take, the higher this 'appetite'. In turn, situations of 'instability' cause the withdrawal of funds in order to reduce risks. Which led to a fall in assets with medium/high risk.
What to do with this: Now this is where it gets interesting...
Nothing.
Those who are confident in the currencies they trade will continue to trade them without any hints.
If the currency doesn't inspire confidence, then why are you still with it?
And if you are new to the market, you better wait out this storm...
Relax, drink some coffee, and watch the storm from the outside, what you learn will be useful to you in the future, and it is not worth taking risks now, no matter how tasty the profit may seem to you.
(You can buy something reliable on the spot and hold it for a month if your hands are itching, but is it worth your nerves?)
Be careful during storms, find your 'shelter'. Always do your own research, and don't take unnecessary risks. Happy trading to all!
Disclaimer: This post does not claim to be reliable, always verify the information you receive (and do not hesitate to ask questions or correct the author if this is really necessary).
