Today @Lendo_io tweeted, “Bitcoin down 50% this year, but still up 700% since 1 Jan 2017.” And nobody can help but notice that there is a continued downtrend in all the top ten coins by market cap, although Litecoin was showing a glimmer of green light today.
The Lendo social media team decided that this would be a good moment to take the temperature of how members of the Lendo community were feeling about cryptocurrency right now, so we posted a poll on Twitter asking them what their sentiment is about the market, with a straight choice between Bullish and Bearish.
It’s a ‘Big Yes’ for Bullish
The result may surprise some people: 75% of the poll voters said they were feeling ‘Bullish’, meaning only 25% are in ‘Bearish’ mode. Checking into Lendo’s Telegram channel, it is clear that many members are strongly supporting Lendo and there has been plenty of chat about how successful Lendo and similar projects are despite the bearish market.
As one member said: “I think a lot of us think this is an excellent project, so we are keen for it to do well.” And a lot of them are talking about their belief in it, even though this might have been a time when people become disheartened by what is happening with cryptocurrencies. Instead they seem to be more enthusiastic than ever.
Why a bear market can help you make money
There is something that everyone should take into account when there is a bearish market. Shelby Davis says: “Bear markets make people a lot of money, they just don’t know it at the time.” We have seen it before when Bitcoin crashed 86% in 2015 and dropped all the way from $1163 to $152. It creates an opportunity to buy and if you bought that Bitcoin at $152, by the end of 2017 the increase on it would have stood at 13,000%. Even today you’d still be winning.
We’re not back at the Bitcoin for $152 scenario, but we are in a downtrend that can do several things:
· The get-rich-quick owners will lose/have lost money
· Ponzi schemes and other scams get flushed out
· Exchanges that can’t handle a major asset class are exposed
And when the downtrend is over, there will be a stronger infrastructure in place, with improved regulations that open up a space for another rise in the value of Bitcoin. Whether or not it will be meteoric, we cannot be sure, but there are a number of crypto experts who believe it will be substantial by the end of the year.
The current situation is causing some to feel uncertainty and fear, which causes them to follow those who are selling off and as a result the coin prices dip even lower. Shelby Davis describes the human response to the situation perfectly:
“The asset stands very little chance of recovering, as every move up is seen as an opportunity to sell at a good price, which continuously knocks the price down. This situation occurs until price reaches a low which is too enticing of a discount for buyers to turn down, causing price to launch upwards and form a reversal pattern.”
We can probably expect to be at the lowest point soon, and that is the time to act and seize an opportunity to buy crypto. Warren Buffet once said,
“Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.”
So, there are good reasons to feel bullish, like the members of the Lendo community, it just requires a bit of belief that the bears will eventually return to their dens.
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