The Federal Reserve’s intention to raise interest rates to curb inflation has prompted investors to steer clear of risky assets. As a result, the cryptocurrency market has plummeted in recent months, going from nearly $ 3 trillion in value to less than $ 1 trillion at the time of writing. If the digital asset market stays depressed for longer, the so-called “cryptocurrency winter”, long-term investors have the opportunity to buy the best Eton at known prices. Here is which cryptocurrency is best to buy at a reasonable price to invest long-term money.
Bitcoin: the king of cryptography
It cannot be said that many cryptocurrencies have survived multiple crypto winters. For this reason alone, Bitcoin deserves to be in every wallet during the current cryptocurrency market crisis.
In addition to Bitcoin’s proven success in cryptocurrency winters, even more important is its success in more ideal market conditions. Let’s take a look at the latest cryptocurrency winter. Most people agree that the previous cryptocurrency winter happened in 2018. Although bitcoin and many other cryptocurrencies hit an all-time high of $ 20,000 in December, just below the level of 2017, bitcoin and many other cryptocurrencies they continued to whiten and not diminish. Bitcoin hit a low of around $ 3,000 at the end of 2018.
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You shouldn’t be trying to time the market now, but investors who invested in Bitcoin consistently throughout 2018 would be in a great position to see jaw-dropping returns when the bull market returns. As a quick reference, if you had invested $ 1,000 in Bitcoin when it hit an all-time low in December 2018, that same investment would have ended up being worth nearly $ 20,000, assuming you stayed until you hit it. as of November 2021, it’s nearly $ 70,000.
If you look at other crypto winters like 2014, a similar pattern emerges. After hitting its previous all-time high of just under $ 1,000 in December 2013, Bitcoin was dry in 2014 and for most of 2015. From $ 1,000 Bitcoin dropped to a few hundred dollars in 2015. If I were convinced to lose $ 1,000 in 2015 low and hold the next all-time high near $ 20,000 in December 2017, your investment will turn to $ 75,000.
Of course, hindsight is still 20/20, but the point is to show that Bitcoin is no stranger to the cryptocurrency winters and consistently generates returns once the downturns are over. The situation today is more or less the same as in previous cryptocurrency winters. Those who add bitcoin to their wallet when market sentiment fades have the opportunity to capitalize when conditions improve. For this reason alone, cryptocurrency investors should be storing more bitcoins in their wallets during the crypto winter.