Overview of the Latest Developments
• Over $62 million in long BTC positions were liquidated in a matter of hours, marking the biggest Bitcoin sell-off this year.
• Positive signs on the US stock market shortly after this Bitcoin crash have given rise to expectations of a temporary price recovery.
• Despite recent price corrections and negative headlines, the fundamentals of the Bitcoin network remain stable with an increasing hash rate and active addresses.
How to Proceed Now?
Forecasts are difficult as both positives and negatives can affect prices. Investors should therefore follow developments closely and adjust their investment decisions accordingly.
Strategy for New Investors
For new investors in the crypto market, it is recommended to invest smaller amounts of money with Bitcoin shares instead of investing larger amounts with whole Bitcoins.
Correction With a Short Shock?
The fundamentals of the Bitcoin network remain stable despite recent price corrections. The hash rate has almost doubled since November 2021, although the price has fallen significantly over the same period of time. Meanwhile, more active addresses are being seen on the network.
Overall, investors should keep close tabs on developments when it comes to making their investment decisions regarding cryptocurrencies such as Bitcoin. It is also advised that new investors focus on investing smaller amounts with Bitcoin shares rather than whole Bitcoins to lessen risks associated with large investments in cryptocurrency markets that can be volatile at times.