2022’s Start Has Caused a Change in Crypto Investor Sentiment -Breaking
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2022’s Start Has Caused a Change in Crypto Investor Sentiment- At the beginning of 2022, crypto investors’ sentiments have changed.
- Market sentiment has changed from fear to extreme fear since last month.
- The most popular trends are investing in cryptocurrency with solid fundamentals.
This year’s start has seen a dramatic shift in the cryptocurrency market. It began in the same way as 2020, when Bitcoin broke its record of $19,000.600. Then it began to explode. In fact, Bitcoin’s price almost doubled between the start of January 2021 and the middle of February.
But 2022 was a complete opposite. Market sentiment has remained bearish since December 2013, when it began to slow. Although there are some signs of improvement, the overall market mood remains very negative.
A simple check of the Crypto Fear & Greed Index will explain where the market is right now. Investors have moved from fear to extreme fear and back over the past month, showing that there doesn’t seem to be hope for market gains insight.
It is easy to observe the changes in investor sentiment. 2022, unlike last year’s development season has been slower. This is because companies have been focusing their efforts on safeguarding themselves and waiting out crypto winter. However, the exchanges, trading platforms and other companies who are essential gateways to the crypto market want to help stabilize the market or at the very least provide their basic services. It’s simple, yet it works.
What are the current trends in investing?
In times of market turmoil like this, large-cap coins with a long history are safer investments than trying to buy newer ones. Bitcoin and other ether assets are becoming hot-ticket commodities. This doesn’t necessarily mean that their prices will increase. These large-cap coins will see their prices rise, but they are likely to fall in value.
Currently, Bitcoin’s dominance over the market stands at 42.6%. At the close of last year, prices had dropped slightly. This indicated that more investors wanted to diversify their portfolios and look at other assets. Now that the market appears to be in a downturn again, everyone’s running to the coin they know will always be here – Bitcoin.
It’s understandable. It’s understandable.
Another common trend right now – especially among industry players – is the focus on growing and building.
Even as the market continues to slump, crypto activity isn’t necessarily down. As long as their business operations are sustainable, the crypto companies continue to work hard at growing. If they hope to improve their standing in the industry, there’s a need for them to effectively grow. So far, they have.
The big names such as and have expanded and look to gain new territory. As Bitcoin has potential to be a major player in the space of payments, companies are more open to adopting it. This is just the beginning.
All of these moves have the same goal in mind – either spark the market recovery or be in a good position to benefit when it eventually comes.
A recent report by BDC Consulting revealed that many investors are more cautious when looking at blockchain projects. The report explained that blockchain companies and projects will need to show resilience in their technologies – as well as partnerships that can propel them forward – if they hope to attract new investors. This is the current state of many blockchain projects.
There’s an old saying that market dips are when we get to differentiate investors. This truth is rarely found in any other market than the crypto-space.
As 2021 approached and the price of coins was skyrocketing people kept throwing money into the markets. But, now that things appear to be slowing down, it’s a different case. Everyone’s shoring up so they can protect themselves.
These are great times for investors who can stay invested over the long term. These people understand the value that the market has, and they’re willing to keep their holdings for the long haul. These people see market declines as an opportunity to invest more.
It’s been here before, the Old-Timers
Not so disconnected from the previous point, there’s also a relative familiarity that this slump has – especially for people who have been here since 2017. People had fun during a market that was optimistic and the funds were flowing. However, market value plummeted to 80%.
Now, we’re seeing something similar. It’s not as bad as an 80% drop, but coins are on the drop regardless. Investors who were here for the previous crypto winter understand that this is just a phase, and they’re willing to make better decisions than they made in the past.
While new investors panic sell off and move their funds to less-productive assets, the old-timers are able to see what’s happening and simply wait.
Conclusion: This is not necessarily a bad thing
It’s easy to see the market’s performance over the past few weeks and believe that things couldn’t get worse. This is for short-term investors who only see the market in a narrower perspective. The truth is that the market’s fundamentals are strong right now, and investors who have some experience will be the first to tell you they’re not going anywhere.
Right now, we’re seeing different shifts in investor sentiment as 2022 continues to bring its set of challenges for the market. But, if you have the right perspective, it is possible to position yourself to profit in the long term.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. This article is not intended to be used as investment advice. CoinQuora urges users to conduct their own research prior to investing in cryptocurrency.
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