The question “Is it time to sell?” is one that many investors are grappling with — both those whose portfolios are in the green and those facing losses or unrealized losses. This question has become even more pressing after several weeks of rising cryptocurrency markets, where green candles on the charts no longer surprise, and the red color evokes anxiety and nervousness. In this context, it is important to carefully assess the current market situation, weigh all risks and opportunities.
Macroeconomic factors and news
One of the major macroeconomic factors that has affected the market in recent days is the news that the U.S. Department of Justice has approved the sale of 69,000 BTC, seized from Silk Road. In total, these bitcoins are valued at $6.44 billion, a significant sum. However, for the cryptocurrency market, which has long been accustomed to large sums and high volatility, this news does not cause panic. Recall that in recent weeks, more than 22,000 BTC (about $2.1 billion) has been withdrawn from exchanges, which is also a large volume but has not led to a major market correction.
Cryptocurrency expert and head of CryptoQuant, Ki Young Ju, stated that there are no serious grounds for panic. According to him, the market absorbed $379 billion in cryptocurrency last year, which is about $1 billion per day. The $6.5 billion sale of BTC by the U.S. government could be absorbed by the market in just one week. This highlights that the cryptocurrency market is sufficiently deep to handle such sales without significant fluctuations.
Robert Kiyosaki’s position and other macroeconomic factors
Famous investor Robert Kiyosaki, as always, predicted possible problems and warned about a potential correction in markets — not just cryptocurrency but also traditional sectors of the economy. He expects a downturn in sectors such as automobiles, real estate, restaurants, and retail. This prediction is based on the overall economic risks associated with high levels of debt in global economies and the potential for a global slowdown. However, it is important to remember that **a correction is not a collapse**. Markets always have both downturns and upturns, and such correction periods can present opportunities for strategic investors.
It is also worth noting that a correction in one sector can lead to a downturn in others. For example, issues in the stock markets or the traditional economy may reduce interest in riskier assets, including cryptocurrencies. However, on cryptocurrency markets, there will always be space for long-term trends and innovative projects that will remain in focus even during periods of economic instability.
Expectations from Donald Trump and political uncertainty
Many are also eagerly awaiting promises from Donald Trump, especially regarding potential support for cryptocurrencies and the creation of new legislative initiatives. However, if these promises are not fulfilled, it could lead to significant market changes, including potential corrections. Such events could always serve as a black swan, an unexpected factor that impacts the market in the short term.
We cannot forget the current inflationary pressure that is being observed in global economies. Central banks continue to raise interest rates to combat inflation. This may make traditional assets more attractive to investors, leading to a decrease in demand for cryptocurrencies. However, in the context of global instability, cryptocurrencies as an alternative asset could continue to gain popularity.
What should an investor do?
Market difficulties are not always a reason for panic. On the contrary, **a correction** may be a time for making more balanced decisions. For those who still believe in the long-term prospects of cryptocurrencies, it may present a good opportunity for long-term investment. For example, if the price of Bitcoin or Ethereum drops, this could be a good entry point for those looking to capitalize on long-term growth.
On the other hand, for those who believe the market may experience a more significant downturn, risk-reducing strategies, such as asset diversification, selling part of the portfolio, or shifting funds to more stable assets, can be employed. It is important to remember that market cycles are inevitable, and there will always be both growth periods and corrections.
Many factors — from macroeconomic risks to political uncertainty — are influencing the current state of the cryptocurrency market. However, despite this, it is important not to panic. Objectively assess the situation, take into account expert opinions such as that of Ki Young Ju, who assures that the market can absorb the sale of 69,000 BTC without significant consequences, and act based on long-term strategies.
In times of uncertainty, it is essential to stay calm, diversify risks, and consider both opportunities and potential threats. A correction is not a catastrophe but a temporary phase that can lead to new opportunities for those ready for long-term investment.
