Crypto Still Down As Evergrande Crisis Drags On

Evergrande Crisis Hit Crypto Hard

China’s financially troubled Evergrande Group is causing massive turmoil in the crypto markets. Most altcoins are down double digit percentages over the last week, with some over 20%. Yes, we’re looking at you, Cardano. Evergrande is drowning in $300 billion of debt (around 40% of the current market cap of Bitcoin) as we speak. The company’s chief executive addressed employees yesterday, stating that they would “walk out of darkness as soon as possible.” Touching words from a man who’s company pushed employees to lend the company money and then stopped paying back their employees loans.

Of course inspirational quotes don’t mean a warm bucket of spit to you when you’ve lost around 20% of your crypto value in a few days. As far as our portfolios look, the question remains, what’s the move?

Fire Sale on Crypto Assets

While this is not financial advice, there are a few ways you could potentially take advantage of turmoil in the markets. We say “potentially” because, even though the initial indications are that China will let this crisis play out, which could lead to even lower prices, the government may still intervene, which could bring prices back quickly. Now may be a good time to find some assets that you believe in at fire sale prices. The fundamentals haven’t changed on Bitcoin and Ethereum. What has changed is their price; Bitcoin is down 10% and Ethereum 16% over the past week. The time may be right for a small purchase of either.

Most of you reading this blog should be thinking of crypto as a long-term investment. And if you are in crypto for the long haul, then a 20% dip shouldn’t be a big deal at all. Perhaps add to your position, but if you can’t, that shouldn’t matter a bit. This isn’t your grandfather’s index fund…. 20% fluctuations are going to happen. When price jumps or dips happen, don’t lose your cool and add to your position if you can.

We believe that we will see the day that when the markets get panicky, people will turn to Bitcoin before they do dollars or gold. With the dollar being continually diluted, institutional investors as well as individual investors are beginning to realize that BTC will hold up better than the US Dollar, due to the fact that you can’t inflate away the value of BTC,

So, while Bitcoin may be losing during the Evergrande Crisis, it is positioned very well to begin gaining value during future financial recessions, depressions and shocks.

Recent Posts