The continued decline and bearish behavior of the crypto markets has worried many investors. The other day, BTC was trading close to $29,000 again and Jason Brink, President of Blockchain at the Gala, took to YouTube to educate crypto investors and confirm them for a better future in the market.
Speaking to the Altcoin YouTube channel, Jason elaborated on the importance of self-policing in the crypto market. Concerned about government regulation in the crypto market, Jason firmly stated that crypto investing is about the freedom of investors.
It’s a free market and so there’s going to be big volatility, but if it creates panic in the market and attracts some government regulations on cryptocurrencies, that’s going to be an even worse thing.
Excessive fear and greed is gripping the market!
Jason suggests incorporating feelings of fear and greed into the market and tells the audience that this is not how the market works. He said that he is not at all worried about the bearish phase of the market as such things keep happening, but if people panic about it and investors start pulling out all their money or demand rules, then it will lead to The market will suffer further.
The structure of 2022 is the same as in 2018
By the end of November 2018, BTC had lost 80% of its value and was trading at around $3,000, with a market cap of around $200 billion. However, if you look closely, bitcoin also followed a similar trajectory in the first quarter of 2022. It concluded a brief rally near a low of $30,000, a high low of $33,000 and a test of the 200-days MA. After the denial, it dropped to $27K this month.
In a down market, survival is the strategy.
Talking about how to survive a bearish market, Jason said that if we panic as an investor then there is no way out of it. Sharing his personal experience, Jason said that he was in deep trouble when he lost his $500 during the first bearish run in the market, which he experienced but nothing helped but patience. Exiting during the early bearish phase of the market can be dangerous for all investors.
Bear Market Effect on Ethereum
While the long-term fundamental outlook for Ethereum is bright, the second largest cryptocurrency is not immune from the effects of the bear market.
on the question of bitcoin or ethereumJason expressed his view saying that anytime soon, unless there is a black swan event, bitcoin is not going to get a flip given its dominant position in the market.
However, Jason seemed a bit concerned about the usefulness of Ethereum and said that even though he loves Ethereum, some false incentives and lack of corrective measures could give this popular coin a flip. This view of the chairman of the gala also makes bitcoin look like a better investment opportunity than ethereum.
This is because the value of Ethereum is down 30% since the beginning of May. At $2,000, the currency has almost reached psychological support. At the time of writing, ETH is trading at $2,032, down 16% over the past seven days and 58% from its November high.
Given the above circumstances, the value of ETH in BTC terms is expected to drop to around 0.04 in the coming quarter. There is a possibility that the pair will fall even further to the lowest point (0.02) observed during the bear market in September 2019.
In practice it should bounce off near the bottom of the channel, regain bullish momentum in 2023, and reach the 0.08-0.1 zone in Q1 2023. (according to industry data).
final thoughts
The best way to navigate the market is to be prepared for any situation. Given the above potential, as experts suggest, it is smart to invest all new funds in bitcoin in future months.