- The crypto market is experiencing a widespread downturn, with Bitcoin and several altcoins like Astar, Helium, and Terra Classic seeing significant losses.
- Australian crypto trader Jason Pizzino interprets the recent Bitcoin drop as a reaction to the ETF announcement, viewing it as a temporary setback before reaching new highs.
- Raoul Pal advises investors to stay calm during the current market downturn, emphasising long-term strategies to get through this.
Red Alert: Crypto Market Down
Wherever you look on sites like CoinMarketCap or CoinGecko, it’s all red mostly – the odd altcoins and stablecoin excluded. Bitcoin has dropped 4% in the past 24 hours continuing its week-long decline. After starting the new year at over USD $42k (AUD $63.8k) it has now slipped well below the USD $40k (AUD $60.8k) mark.
The worst hit coins are altcoins though, with Astar (ASTR), Helium (HNT) and Terra Classic (LUNC) taking the biggest hits, losing between 8 and 11% during the past 24 hours.
Notable exceptions are Kava (KAVA), Siacoin (SIA) and Sui (SUI) which all gained between 2 and 5% despite the overall downturn.
ETF Announcement = Sell the News Event?
Aussie crypto trader Jason Pizzino has welcomed the Bitcoin drop saying the “ETF announcement was a sell the news event.” But overall, he expects this not to be more than a hiccup on the way to new alt-time highs. When will that happen? Well, according to Pizzino don’t expect USD $50k (AUD $78.8k) Bitcoin before at least the second or third quarter of 2024.
Despite this, the long-term outlook of the Spot Bitcoin ETFs remains bullish, with a total trading volume of USD $19 billion (AUD $28.8 billion) in the first seven trading days according to Bloomberg analyst James Seyffart.
Industry expert and former Goldman Sachs manager Raoul Pal added that this downturn could be either swift and painless or long and painful. But he reminds investors to play the long game and remember to keep their cool.
This reinforces a message he posted a few days ago reminding everyone of his principles for investing: Don’t use leverage, don’t buy based on emotions, self-custody wherever possible, don’t spread yourself too thin and limit exposure to meme coins, expect frequent corrections and buy the dip if possible – but of course also this:
HODL over a longer time horizon.
Zoom out and remove the noise.
Raoul Pal
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