E L Emerson
We’re seeing a lot of headlines asking why the prices of some of the leading cryptocurrencies like Ethereum are falling.
And some would suggest that it’s little wonder there’s a downward price draft given the constant negative news about things like dodgy Monero mining bots shifting ill-gotten funds to North Korea, criminal activity and unused Oracle vulnerability patches causing crypto chaos, and Ethereum’s sudden and rather unexpected pummelling out of second position amongst the world’s leading cryptocurrencies.
But just like Ethereum’s resumption of its second-only-to-Bitcoin throne, we would be only half right to assume that a crypto-confused media is to blame for what appears to be an altcoin mid-January market hiccup.
In fact, very wrong indeed.
The ever-so-slightly longer-term view suggests that the market is simply doing what most every financial market does; rides emotional sentiment, vaults with support and dives downward when the herd gets scared and runs away. And in so doing it serves the very important service of shaking the weak hands from the trees and creating terrific value opportunities for those courageous enough to “buy the dips.”
Consider Ethereum, which has for the most part continued its big rally, hitting yet another all-time high on Wednesday 10th January, and topping out at just above $1,400 before receding today.
This week (to the time of writing) has seen Ethereum move up about 60%, and over the past year up more than 13,000%.
So, perhaps the problem we’re alleged to be experiencing is not so much one of market problem, but investor perception.
I would prescribe a seat that rolls backwards away from the screen at which you’re gawking, and a cryptocurrency perspective that extends beyond the goldfish bowl of minute-by-minute media commentators.
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