CRYPTO HOLDERS WE COULD DROP FURTHER (THE TRAP IS REPEATING, DON'T BE FOOLED)

My Financial Friend

Introduction to Crypto Market Volatility

The crypto market is expected to experience significant crashes and drawdowns in the future. Despite this, the speaker remains long-term bullish on crypto.

Recent Market Trends

  • Bitcoin has fallen by 16% from its peak to bottom.
  • The entire market has dropped to $3.3 trillion, down from $3.8 trillion in the last 30 days.
  • Altcoins have also experienced significant pullbacks.

Historical Context

  • The last bull market saw a 31% drawdown, followed by a 122% run-up.
  • The market can be highly volatile, with potential drops of 50% or more.

Preparing for Drawdowns

  • It's essential to be prepared for significant drawdowns and to have a plan in place.
  • The speaker has stopped buying Bitcoin and is focusing on balancing their portfolio.
  • They advise against lump sum investing and instead recommend dollar-cost averaging.

Risk Management

  • It's crucial to assess your risk tolerance and timeline before investing in crypto.
  • The speaker has taken small profits from trading positions but is still holding the majority of their Bitcoin.
  • They advise against selling during peak fear in the market.

Future Outlook

  • The speaker believes that Bitcoin is undervalued and that the market is not close to a top.
  • They expect significant volatility and potential manipulation in the market.
  • However, they remain bullish on Bitcoin's long-term prospects.

Personal Strategy

  • The speaker plans to continue measuring their risk tolerance and making adjustments as needed.
  • They may start dollar-cost averaging again if the market experiences a significant drop.
  • They advise viewers to make their own decisions and to be cautious when investing in crypto.