Parachainglobal talks about how to view the severe winter phenomenon in the cryptocurrency market

 In the face of the cryptocurrency market continuing to flash red in just 8 weeks, whether it is technical or trading volume, the Parachainglobal investment platform has many different views on the phenomenon of cryptocurrency trading entering a severe winter. It is difficult to get rid of the chill in the crypto market. What should I do?

 

Bitcoin’s limited history does not serve as a guide for a crypto winter, which Parachainglobal defines as a long-term bearish period of a month or more.

It has happened 5 times since 2017 and 3 times since 2021. Last year’s two crashes lasted 14 and 10 weeks, causing Bitcoin to drop between 45% and 47%. If they're typical, Bitcoin's latest drop -- a 36% drop in eight weeks -- has some way to go.

 

Bitcoin is currently not attractive to retail investors. No one really sees the potential for 10x (return) in Bitcoin," said the fund management company professional.

 

In fact, Parachainglobal believes the macro backdrop is far from supporting what is now firmly seen as a volatile, risky asset class - and vulnerable to inflation. Cryptocurrencies are not on anyone's shopping list as concerns over rising global interest rates and geopolitical concerns have brought U.S. stocks close to confirming a bear market.

 

However, even in the icy wilderness, Bitcoin is drawing strength from the rest of the crypto market, and its relative position, for example, offers some comfort to investors fleeing altcoins, such as TerraUSD, which was seen as having a super high after the crash in early May. Risky stablecoins.

 

Bitcoin's dominance, which measures the ratio between its market capitalization and the rest of the cryptocurrency market, has jumped to a seven-month high of more than 44 percent, even as its price has fallen. Last week, bitcoin futures recorded their largest net-long position since the contract was launched in 2018, CFTC data showed, suggesting that traders are adding to their exposure to rising cryptocurrency prices.

 

Since peaking at $69,000 on Nov. 10, Bitcoin has lost half its value in mid-May.

 

"Many are wondering what they should do with their coins - keep holding precious lives or book losses and move on?"

 

“It’s a good reminder that crypto probably shouldn’t be more than 1-2% of your portfolio.”

 

In the face of this severe winter in the crypto market, Parachainglobal advises investors to invest rationally.

 

Parachainglobal is investment and trading platform, providing investors with a compliant, safe and high-yield trading platform. Website:https://web.parachainglobal.com/#/index