Popular Altcoin Prices Drop in Unison
We have been here before. The “flash crash” that occurred the morning of December 4th can likely be attributed to many factors, but the lesson is the same - investing in cryptocurrency requires the wherewithal to deal with extreme volatility. Bitcoin continues to reign as the industry titan and when the price suddenly plummets, like it did Saturday morning, altcoins and other cryptocurrencies are likely to follow suit.
Crypto-investors found themselves having to deal with that exact scenario this past weekend.
Omicron Variant Effects Prices
Hopes of seeing Bitcoin achieve a year-end price level of $100,000 were dashed in only moments when monetary policy rumours and speculation about the new Covid-19 variant, Omicron, sent tremors through the cryptocurrency marketplace.
The world’s original cryptocurrency suddenly lost more than 18% in value, dropping to as low as $42,875…all within the span of a single hour. As the new week begins, Bitcoin has already recovered some of that value back, creeping just above $50,000. But, still well below the $55,000 - $59,000 price range the digital coin traded in the week prior to the crash.
Don’t act surprised. Experiencing a 30-40% price fluctuation within a single month is something to be expected as the cryptocurrency market continues to mature.
Buy The Dip- Opportunity?
Following closely behind Bitcoin, the world's _second-_largest cryptocurrency by market capitalisation, Ethereum, declined to $3,525 per coin – the digital asset’s lowest price in a month, though it has since recovered some of the lost value.
There are investors among us who have waited patiently for this opportunity. The more experienced crypto-investors among us are seeing a familiar pattern – a significant and sudden market decline “washes out” the crypto-newbies who’ve been playing the cryptocurrency market like a casino, and while those players are making for the hills, the more prudent among us view the market carnage as a buying opportunity.
In other words, is this an opportunity to “buy the dip?”
Even if we take Saturday’s precipitous drop into consideration, Bitcoin was trading just over $29,000 when 2021 began so it is still up over 65% on the year. Lately, we seem to have been standing on the edge of what many would consider “mainstream adoption” of cryptocurrencies like Bitcoin and Ethereum. But those aren’t the only two “would be” buying opportunities right now.
Rise of The Altcoin
Last weekend’s sell-off affected other altcoins that had been riding a trend of popularity in 2021, making such affected digital assets no less enticing in terms of “buying the dip.” Polkadot, which trades under the symbol DOT, looks especially appealing right now. The digital asset lost nearly 10% of its value in the first 24 hours of the sell-off, but most suspect the decline had come as a result of the broader market sell-off.
At present, Polkadot is showing signs of recovery which would suggest strong investor support for this suddenly popular digital asset. Polkadot has evolved to find a place on the list of the top-ten largest cryptocurrencies by market capitalisation, we assume for a reason. Investors looking for solid projects to invest in that demonstrate future potential might have a reason to consider Polkadot right now. Like, right now…
Author: Greyson Kelly
Greyson Kelly is a business writer living in Milwaukee, Wisconsin. He writes extensively on technological trends, cryptocurrency, and ‘cutting edge’ industry topics. He has an MBA in Business and has over a decade of experience in communications and public relations.