🔥Crypto welcomes the "red" every day. This is also the nature of Crypto. The market's fluctuations last night are related to the political tensions in various parts of the world, making it more interesting.
On the morning of the 22nd, Bitcoin dropped below $88,000 and then returned to around $90,000. What lies behind these "highs and lows" is quite intriguing.
🌍 The wind from Davos
This time, the price movement is related to the World Economic Forum in Davos, Switzerland, where Donald Trump's remarks are at play. Trump threatened European countries with increased tariffs regarding Greenland, causing investors worldwide to feel "nervous."
When investors get scared, they sell off risky assets like crypto and run to safety, such as gold and silver. In that scenario, Bitcoin plummeted to $87,300. However, when Trump backtracked on his statements, saying, "There are ways to negotiate," the price started to rise again. Everyone knows that Trump is a unique figure with a somewhat unpredictable style.
📊 Market Situation
The price drop isn't just about Bitcoin; other altcoins have also been affected by this wave.
Ethereum (ETH) briefly dipped below $3,000, but now it's back above $3,020.
Solana (SOL) is also fluctuating around $130.
XRP and Cardano (ADA) have also reached their lows, but now they seem to be stabilizing a bit.
Dogecoin (DOGE) is hovering around $0.127, and it hasn't bounced back strongly yet; it's still in a "wait and see" position.
Looking at it this way, it's more accurate to say the price has "temporarily stabilized from the bad" than to say it has "turned back to the good."
🔍 Is crypto like "gold" in terms of safety?
"For those who believe in Bitcoin, it is Digital Gold; it rises when the economy falters," is something you might have heard. However, in reality, it's just as it seems. When global political situations are unstable or when Japan's government bonds (Bond Yields) rise, crypto remains the first high-risk asset to face selling.
So, crypto cannot be separated from the global economic macro conditions. A single statement from a politician or a decision from a central bank can unpredictably change our portfolio.
In reality, crypto is tied to the global economy, so every time Trump speaks, buying and selling follows, leading to losses. Right now, it seems like the price is just bouncing up and down in a short span.
I can no longer just look at the charts. One must pay attention to news like the US tax policy, Japan's interest rates, and events like Davos to protect one's portfolio.
At times like this, "Panic Selling" is the worst mistake. It's essential to determine whether your investments are for the long haul or just day trading. Long-term investors shouldn't be swayed by these fluctuations. Patience is key to success, as experts often say.
Crypto is like a rollercoaster right now. It's extremely fast, can be very scary, and also very exhilarating. Will Bitcoin manage to hold above $90,000, or will it drop again due to new news from Davos? That's an intriguing puzzle.
What to be mindful of... No matter how much the price jumps like a newborn puppy, only your "knowledge" and "stability" will lead to success. Avoid greed and anger, and carefully study the information. Then, make regular investments with DCA and get through this big period together. Good luck! 🚀✨
