I was talking on the phone with a friend two days ago and I was pushing the idea of selling the crypto’s. The coins market is always volatile, 10% up for the day, and then 10% down the next day, but recently it had been ‘down, down, deeper and down’ (one of my favorite songs, by Status Quo).
I figured a 30% loss compared to the last week of december was enough, and the market was not going to pick up any time soon. Bearish sentiments all around. Sometimes you have to know when take your profits, and when to cut your losses. Profit is only profit when the money is in your bank account, otherwise it is just figures on a screen. Take the money and run !
What triggered me in particular was that story about Tether (USDT) possibly issuing lots of non-backed coins to support the recent Bitcoin price rally. That is still no more than a rumour and some allegations but if it turns out to be true, it could cause a collapse of Bitcoin back to 2000 dollar level, and that might take the entire market down with it. An 80% correction in the market. The market had an amazing bull-run in november and december 2017, a lot of coins tripled and quadrupled in price. But that could evaporate in a matter of days.
So we sold our holdings two days ago. Just in time.
Yesterday all coins were down 20% to 30%, some even 40%. A lot more people decided to dump their holdings yesterday. Coinmarketcap indicates the total coin market cap dropped to 400 billion with over 30 billion day trade. I pity the poor people that went on a shopping spree in the past few weeks, they bought everything at record market highs. They are the poor lost souls that are taking the beating. I think a lot of people in South Korea are having a really tough day.
I am still bullish on the technology, especially platform coins like Cardano, Lumen, Universa, Ethereum. Once the dust has settled and the market has finished correcting I might get back in the market.
But for now : down, down, deeper and down.