Market Panic: Bitwise CIO Reflects on Bitcoin's Resilience Amid Market Turmoil

[sirty143]

Market Panic: Bitwise CIO Reflects on Bitcoin's Resilience Amid Market Turmoil

The chief investment officer at asset management firm Bitwise has addressed the current market downturn, drawing parallels with the market crash on March 12, 2020, when the Covid-19 pandemic caused global panic. “People smash the sell button for liquid assets during broad-based panics. But from my seat, today’s events play into the long-term story for bitcoin,” he opined. See more for yourself here.

Your opinion is greatly appreciated.

[NotATether]

I mean, Bitcoin literally dipped deep for like, what, one day? And then it went immediately back up. I'm not sure what other evidence people would like to have that this is something that Bitcoin can handle easily. Those past few events were literally not even going to damage investor confidence at all. So keep buying.

[hugeblack]

What happened on March 12, 2020 was the first real panic selling in the market and the bloodbath broke all technical analysis indicators but since then every price collapse has been expected and controlled so that the price rises before the end of the week’s close which is a good thing for those who want to accumulate profits.

[Faisal2202]

I sometimes wonder why we don't see the sell-off from another angle, which is okay I agree that people were selling and the market dumped but it is right to say on the other side there are people buying these BTC. If people are providing the liquidity, then it means there are real buyers, and sometimes the exchange is providing the liquidity, but that also means the exchange is buying not for themselves, but they will sell them to the buyers when they are in the market.

So this also explains that exchanges like big ones providing liquidity also trust the BTC and not just exchanges but almost every person who has spent some time in trading and has been involved with BTC knows that it can't dump always and it's not true that it won't recover after a dump.

[ZAINmalik75]

I sometimes wonder why we don't see the sell-off from another angle, which is okay I agree that people were selling and the market dumped but it is right to say on the other side there are people buying these BTC. If people are providing the liquidity, then it means there are real buyers, and sometimes the exchange is providing the liquidity, but that also means the exchange is buying not for themselves, but they will sell them to the buyers when they are in the market.

So this also explains that exchanges like big ones providing liquidity also trust the BTC and not just exchanges but almost every person who has spent some time in trading and has been involved with BTC knows that it can't dump always and it's not true that it won't recover after a dump.

Big exchanges are making millions in profit by buying low and selling high Binance owns most of the BTC now among other centralized exchanges and we can sell on Binance anytime, like even in the times of pandemic. Bitcoin has proved that if it's volatile it does not mean it will only dump just like any other alt it will not fail.

BTC like you said will always recover and it can't dump forever those who have trust in BTC will buy BTC at its lowest they will buy it all and it will start pumping again. Demand and supply keeps the price up and down of BTC.

[joniboini]

BTC like you said will always recover and it can't dump forever those who have trust in BTC will buy BTC at its lowest they will buy it all and it will start pumping again. Demand and supply keeps the price up and down of BTC.

To be fair it's not that easy to stay calm if you see your wealth go down to -50% overnight. Not to mention those market makers make profits even if the market is in a bear market, unlike retail traders. I think it's easier to detach our emotions if we're using money we can afford to lose or stop checking prices regularly (as long as we set a stop loss). It doesn't help that new traders sometimes buy at the top at the last bull run.

[Faisal2202]

BTC like you said will always recover and it can't dump forever those who have trust in BTC will buy BTC at its lowest they will buy it all and it will start pumping again. Demand and supply keeps the price up and down of BTC.

To be fair it's not that easy to stay calm if you see your wealth go down to -50% overnight. Not to mention those market makers make profits even if the market is in a bear market, unlike retail traders. I think it's easier to detach our emotions if we're using money we can afford to lose or stop checking prices regularly (as long as we set a stop loss). It doesn't help that new traders sometimes buy at the top at the last bull run.

I can't agree more with you. I really won't see my portfolio down to -50% just overnight, and speaking of market makers and short traders, they will always be making a profit as the market has two cycles bear and bullish, and when bullish will end the bearish will start. When I was a newbie, I lost $5, and it was a lot for me. Then I lost another $5, and then I started again and made $15 to $19 in a few days. Then I lost it all.

I lost a lot and my portfolio went to zero 2 to 3 times but now at the current moment I don't want my portfolio going to -50% even.

I agree with ZAINmalik75 even as he said the BTC price will recover if not in 1 month then in 1 year or 3 years it will recover.

[TomPluz]

Most big and successful investors and even traders realized the lesson of adding more when there is a bloodbath in the market...as surely the bear will be back and with Bitcoin it won't take that look. Of course, we should not deal with shitcoins as they are really shits...once they are down they can be done for good as there is no real value with them. With top coins, you can be sure that a rebound can happen and it is just a matter of time. Panicking can be a very good strategy to lose money and lose that opportunity of financial freedom. One must not be emotional...and though this is never easy it must be done as soon as possible. Lastly, a deep dip can be teaching us lessons for a lifetime that we can use while we are in the crypto industry.