One that’s very disappointing, to say the least.
The crypto market is moving sideways or still trending downwards due to ongoing friction surrounding tariffs and concerns about a potential global economic downturn.
Some prominent crypto investors believe the bull market is over and we’re returning to a bear market.
With BTC at its highest level of market dominance since 2021, returning above 60%, I’m not surprised by this stance, particularly if you predominantly hold altcoins.
Firstly, I wouldn’t jump to this conclusion. Bitcoin has returned above the $80,000 resistance level (or at least a psychological one) and is around $85,000.
Ethereum and other networks are gradually improving infrastructure (e.g., upcoming Pectra upgrades), XRP has greater regulatory clarity, and other blue chips are (slowly) chugging along.
This is another accumulation phase in preparation for another major leg-up soon. We’re not done yet.
If you’re a crypto content creator, you’ve likely noticed a significant drop in views, reads, downloads, and other metrics.
Regardless of how you see it, for long-term holders and savvy day traders, these sideways movements, volatility, and lower prices are music to our ears.
Amateur crypto investors who lack an understanding of market cycles, manipulation, and macroeconomics complain about missing the boat on Bitcoin and other blue-chip digital assets.
————————————————————————————————————————–
The most ironic aspect of crypto is that when the market collapses, this is when most money is made in the long run, snapping up relative bargains.
Yet, many average people tune out because others aren’t discussing it in a positive light. You’d think they’d eventually learn not to fall for this (after all, we were all retail investors initially), but they can’t be bothered to look at the bigger picture or are too scared to adopt a contrarian mindset.
Worse still, they’ll sell out of panic, assuming the bull market’s over, only to flood back into the market once they see memecoins and other nonsensical projects going ballistic.
They’ll often fall into the trap of selling because certain mainstream media outlets or uninformed friends and family encourage them to do so.
By avoiding dips, these people are missing out on one of the two most crucial periods of a given cycle, the other being knowing when to cash out and how much.
Additionally, when we crypto commentators say that you should only invest what you’re willing (and can afford) to lose, it’s not just to cover ourselves and to avoid you getting wrecked by market dumps.
There’s also a psychological perspective: You’d be less likely to cash out crypto during a bear market if you don’t desperately need the money.
By now, several people will have perceived me as a delusional crypto permabull, and I’m fine with that.
Better this than being a constant party pooper or naysayer.
When BTC and blue-chip altcoins are down, it’s time to buy more for a much cheaper price.
Amid a bull run, it’s time to enjoy the euphoria and profits after several years of enduring this rollercoaster ride.
The essential questions we need to ask ourselves
– Is there an issue with a specific blockchain?
– Is the network being compromised? I’m thinking of Bitcoin, Ethereum, XRP Ledger and other reliable chains.
– Has the value proposition been drastically altered? I’d make an exception for Bitcoin, which was initially designed to be primarily used as a peer-to-peer payments system, but now looks like it’s done the complete opposite as a store of value. I covered this in detail in the following article.
https://medium.com/@cryptowithlorenzo/has-satoshis-plan-for-bitcoin-been-ruined-d37c89739195
If the answer is no, there’s little to worry about.
Case in point: The COVID-19 crash in March 2020. Almost every market was decimated for most of that year, only to bounce back stronger than before.
In a matter of days, the BTC/USD price dropped from $9,000 to less than $5,000, and altcoins also crashed.
Fast forward to November 2021, and BTC set a new all-time high of $69,400.
Despite another prolonged bear market during 2022 and 2023, BTC silenced its doubters and haters by smashing through $100K earlier this year.
The smart money cut through the BS and realised nothing is fundamentally wrong with Bitcoin’s metrics.
————————————————————————————————————————–
Stop mindlessly following the crowd.
Instead, look at trends, especially those involving big money.
– BTC, ETH, and other blue-chip crypto exchange supplies continue to fall.
– Interest rates: BTC reached 50% higher than its 2021 peak, even though interest rates were much higher – 0.25 % in November 2021 vs. 4.5% in January 2025.
– Over $95 billion of BTC managed by American spot Bitcoin ETF managers, in addition to ETH and upcoming XRP, SOL and other blue-chip altcoin ETFs.
– A pro-crypto government is ushering in much friendlier laws and rules to allow crypto and blockchain-tech enterprises in the USA to flourish, unlike those in the previous administration.
Beyond the USA, other important regulations include the European Union’s Markets in Crypto-Assets (MiCA), the UK Parliament’s Property (Digital Assets etc) Bill, stablecoin regulations and adoption, and standardised KYC AML laws for digital assets, which indicate growing acceptance of digital assets.
Knowing this, why fall for the FUD and abruptly sell off your crypto, especially if there’s no plan to buy back in at a potentially cheaper price?
Additional thoughts
It’s important to distinguish between cashing out when pre-determined targets have been hit and panic selling.
Almost all of us will take profits and use this cash to buy a house (particularly if it’s our primary residence), pay for other essentials, pay off high-interest debt, or reinvest in other assets.
It’s another when someone’s being overly negative and alienating people for this behaviour by panic selling.
While more experienced and level-headed crypto investors see through the emotions, many amateurs fall for the sensationalist crap online.
Don’t touch your crypto when the market is down or if you don’t need to liquidate assets.
I admit there is a major exception to the rule, like when you’re looking to reduce your taxes, as Tom Handy covered a few months ago.
Pay attention to this strategy in the final weeks/months of a financial year, especially if you plan to cash out during a major bull cycle.
What other mistakes do rookies keep on making, even when they should know better? Comment below.
Affiliate link
If you’d like to purchase a Ledger or Trezor product, please use the following link to help support my channel. I receive a small commission per sale at no additional cost.
https://shop.ledger.com/?r=a1b3ac23d773
https://affil.trezor.io/aff_c?offer_id=169&aff_id=35611
You might also be interested in these stories:
https://medium.com/@cryptowithlorenzo/bitcoin-is-going-to-zero-5562122f5481
https://cryptowithlorenzo.medium.com/why-we-shouldnt-be-investing-in-crypto-6ea5bc7de737
Disclaimers
- This blog post is for informational purposes only. It is not financial, legal, or investment advice. You are ultimately responsible for your decisions.
- My opinions in this piece may not reflect those of any news outlet, person, organisation, or entity listed here.
- Please do your own research before investing in any cryptocurrency assets, staking, NFTs, or other products associated with this space.
• BTC and ETH account for approximately half of my crypto portfolio. ADA and XRP represent another 25%.
Image by OlegD at Shutterstock