All those who closely follow the cryptocurrency market could not help noticing the catastrophic fall in recent days. Bitcoin retreated to its October low already, approaching the $ 6000 mark, and the total capitalization collapsed below $ 350 billion. And all this in the context of the vertiginous December rise to $ 20,000 per bitcoin …

For someone from investors who entered the market at around $ 8,000, this is already a true excuse for panic. However, crypto-optimists, on the other hand, believe that now is the time to invest in bitcoin: the best opportunity this year will no longer exist.

Bitcoin is falling all January and early February, quickly losing its price. A week ago we were already working out the reasons for what was happening. Analysts mainly blame the attention of national authorities in the current depression, particularly in South Korea.

Only since then has attention been intensified even more. Problems with BITFINEX and tether (usdt). These guys are now the main suspects of inflating the “bitcoin-bubble” in December of last year. If the suspicions are confirmed, this will be the biggest precedent in the history of the market. And a bigger scam in all of history.

In addition, only these suspicions are a sufficient reason for the market to go into a prolonged downturn.

At the time of writing this (February 6), bitcoin costs around $ 6,800, collapsing another 20%. The rest of the cryptocurrencies are also in the “red zone”, losing their capitalization.

The introduction of legislative regulation for the cryptocurrency is already a tangible reality. The Chinese authorities, following the path of bans, gradually cut off oxygen to local merchants. In the United States, financial regulators urge the Senate to draft a national bill on the regulation of the cryptocurrency industry. The authorities of several countries make it clear everywhere that free trade ends, and several scammers will have to be responsible for inflating the bubbles in the market. And this, apparently, is the main trend of the market in 2018.

The main question: what to do with all this to investors in cryptocurrencies?

Co-founder BK Capital Management and author of the book “Bitcoin-boom: how alternative currencies will change the world” Brian Kelly belongs to that category of crypto-optimists who will never lose faith in the virtual currency.

Like most analysts, he blames events in South Korea and the United States for what is happening. However, in his opinion, the rapid decline does not prove the futility of the market. Therefore, it is time to invest in bitcoins, especially those who missed this opportunity in mid-November. In addition, according to Kelly, bitcoin is still highly overvalued and should fall at least another 15% before the next round of recovery.

“I determine the internal value of bitcoin by the number of transactions. There is a simple regression of the number of transactions and the speed of their processing. Therefore, the intrinsic value of bitcoins is somewhere in the $ 8000 level “, – he writes.

At the end? The current decline is in fact in the context of a market over heated, when many nonprofessional speculators were thrown into the industry. The loss of money will disappoint them in cryptocurrency and force them to abandon the market, which in the long term will only strengthen it.

For traders, Kelly prepared three universal tips:

Start with small investment. Cryptocurrencies is still a relatively new technology, so do not invest more than 1-5% in them;
Patience! Do not sell the purchased currency too early, even if the investment has grown by 20% or even 30%;
Do not panic. The instability of the price of the cryptocurrency causes fluctuations of up to 20-50% per day, this is not an excuse to get rid of the assets immediately.
In the end, Kelly believes that, if you are ready to invest in cryptocurrencies, you should now buy Bitcoin, Ripple or Stellar. For those who are interested in blockchain technology, the investor recommends investing in Ethereum, due to the system of intelligent contracts and potentially faster transactions.


The executive director of the blockchain platform Current and the cryptoinvestor Dan Novais are also not excited about speculation with Bitcoin. In an interview with CNBC, he said in an imaginative way that those naive people who decide to earn some money in short bets will simply be sent to the slaughterhouse.

Trading in the daily strategy with bitcoin now – it’s a bad idea. This is obvious. Therefore, Novais recommends investing for a long perspective: he does exactly the same. In favor of the growth of the market speaks the same blockchain technology, which is at its base.

“I believe in the technology behind the industry. Maybe now we are at the beginning of the greatest movement of values ​​in history, “he said. “However, this will not happen immediately. It will take at least five to ten years. Therefore, I would recommend investing in the cryptocurrency market no more than 1-2% of your savings and for the long term. This technology has many advantages that will change our lives. ”

The current bubble in the cryptocurrency market can be compared to the Internet boom 20 years ago. Then, too, many innovative solutions were created, which we use to this day, however, there was also a large space for speculation.

“Not all cryptocurrencies and decentralized applications will survive. We’ll see which ones work, “he said. “If you had the opportunity to distribute your portfolio among the TOP 20 companies before the predot-com boom, you would actually have made a big return on those that did,” Novaes said.

If we summarize some results, we should note some things:

The market will move gradually towards the normative channel, free will is finished;
Those who set out to earn a fortune in bitcoin for a month and a half should abandon this idea. The market will now grow slowly and gradually.
The current decrease does not mean a catastrophe. Yes, the performance will decrease, but Bitcoin is able to reach new heights;
Playing in daily bets is now a bad business. Invest in the long run, and then you can win.