![]() This means, around derivatives' expiration dates, there’s often volatility as hedges are adjusted or positions closed. Institutional investors often use derivatives markets to hedge exposure to assets like stocks or Bitcoin. She says she’s worried about both the Federal Reserve’s plan to raise interest rates and the upcoming quarterly expiration of Bitcoin futures contracts in late April, both of which could send Bitcoin prices even further south. “My advice is DON’T do it,” said Eloisa Marchesoni, a longtime cryptocurrency investor and consultant, by WhatsApp message. The upshot is that even the famously bullish crypto crowd is cautioning novice investors about jumping into the market right now. They fear Bitcoin may return to the “crypto winter” pattern of 2018 to 2020, when a long-term chart shows a sideways drift between $4,000 and $10,000. Technical analysts, who study price chart patterns to make market predictions, say other assets that have sustained price crashes of this magnitude often flatline for months or years afterwards. For some other cryptocurrencies, the losses have been even deeper. Over the past three months the price of Bitcoin has plummeted more than 40% from its record November high, amid relentless selling. But in the latest sell off, even many seasoned cryptocurrency experts are warning against the strategy - unless you are willing to hold on for years to come. ![]() " Buy the dip" has long been a rallying cry for Bitcoin investors.
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