The correction of the cryptocurrency market continues. Price impulses are periodically observed, but they occur in weakness and in the absence of a proper foundation, as a result of which the bulls cannot develop a full-fledged offensive. At such moments, it is best to make a choice in favor of the most reliable projects, which are backed by large funds, providing them with the full range of necessary support from cash injections to marketing. It is enough to look at Cardano, which occupies the 9th place by capitalization at the moment, to understand that technology is far from the main thing in the crypto market. Over the past 5 years, Cardano has not been able to create attractive conditions for developers and businesses, but this does not prevent the native token from participating in a general price rally.
The best assets in the current conditions are infrastructure projects like Polkadot, Solana, Harmony, Fantom and others. Cryptocurrencies are not alone in their problems: the correction of US technology companies also began at the end of last year and continues to this day, while many industry representatives have lost about 50-70% of their peak values. Thus, in order to fully understand the situation in the crypto market, it is also necessary to monitor global processes, such as the high risk of stagflation, the outbreak of coronavirus in China, and changes in the monetary policy of the largest central banks.
Any news that can seriously change the balance of power in the market
This, of course, adds to the tragedy of the situation, but reasons for optimism can be found even now – ventures continue to invest a lot of money in promising projects. For example, over the past week, the 0x infrastructure project received $70 million, and the CertiK audit firm received $60 million. The big players are focused on the long-term perspective, so that hopes for the future remain.
In general, BTC has every chance to fall in price to $ 30 thousand per coin, and a number of coins against the background of this dynamics will lose another 50% or more from current prices. That is why it is worth accumulating coins as carefully as possible and only during drawdowns.