Every now and then, all markets experience a correction.
That’s how market cycles work. We go through a period of building, which spurs investor confidence.
Confidence causes prices to rise, the media catches wind, and investors pile in as positive news fuels exuberance. But then things start getting overheated. And at some point, a negative news story causes investors to reevaluate their positions.
This is when some de-risk their portfolios, causing others to follow suit, and prices recede to a more reasonable level. A cascade of bad news can send markets into something of a tailspin, as we’re experiencing now.
But one thing is for sure. History always repeats itself, and upward trends always resume at some point.
If you don’t believe us, zoom out.
What’s causing this dip?
Bitcoin flew to an all-time high of just over $67,000 in November 2021.
The rest of the crypto market followed suit, in no small part buoyed by the relative optimism circulating the globe.
Authorities had been pumping cheap money into economies following the global pandemic. Technology companies were booming as much of the world was working from home. And most concerns had drifted over the horizon.
But as 2022 arrived, headwinds appeared. There were suggestions that global stimulus packages were finally causing an uptick in inflation, forcing governments to consider raising interest rates from generational lows.
Then in February 2022, Russia invaded Ukraine. This compounded issues in already-disrupted supply chains, pushing prices higher. Now, we’ve all been dealt a reality check, and the market is risk-off, but as history tells us…
The downward spiral will end soon enough, and prices will trend upwards once more.
Here’s what to do in the meantime
Make no mistake.
We all feel the pain of market dips. Plummeting prices instil panic, and panic can make us want to sell.
But selling is rarely optimal in a market-wide dip. A better strategy is to hold onto your original convictions and focus your energy on building. Because dips are temporary, and they’re a great time to build.
That’s why the Elitium team is ignoring the market conditions and simply working hard on our imminent Pancake Swap launch, which we’re promoting with a giveaway from one of the world’s leading digital artists.
So, if you can — try and use this dip to focus on building. While if you want to generate yield in the meantime, you can always open an Elitium account and deposit funds into one of our stablecoin savings solutions.
Then when the market rebounds, as history shows it should, you’ll be perfectly placed to capitalise on the next bullish cycle.