In a significant week for cryptocurrencies, the collapse of terra networks shook the crypto market – such as its stablecoin TerraUSD (UST), and its blockchain’s native cryptocurrency Luna.
UST, Terra Stablecoin – not to be confused with USDT (Tether) – was designed to be algorithmically stable and pegged at US $ 1 through a minting and burning process. Unlike the USDT or USDC, the UST was not completely parallel and thus became the subject of an attack on its US dollar peg. The attack succeeded in dipping UST Stablecoin, resulting in a sharp sell-off in the crypto market.
“I think Warren Buffett’s words are always true here – ‘Fear when others are greedy [and] Be greedy when others are afraid, “said Brett Hope Robertson, head of investment at crypto platform Revix.
“We have seen that a market has become accustomed to easy returns (greed) without understanding the risks involved and now we see a market in the highest fear. Yes, fear is scary, but it creates opportunities in times of uncertainty. The fall of Tera has undoubtedly brought some interesting opportunities to the market. “
How much fear in the market?
The Bitcoin Fear and Grade Index – an indicator that measures investor sentiment in the market – ranks second in the history of the crypto market.
But what does all this mean for you?
Although Bitcoin has fallen 23% in the last month and 55% since rising above $ 67,000 in November 2021, many alternative coins, also known as altcoins, have experienced sharp pullbacks.
“You know, Baron Rothschild once said – if there’s blood on the street, buy it, even if it’s your own,” said Hope Robertson. “History has shown us that the same is true in the crypto market and when the fear and greed index is below 10. [it] Historically a good buy. “
Zoom out and look at the big picture
The following heatmap shows that BTC has historically found support at the 200-week moving average. The color-coded heatmap is based on a percentage increase over that 200-week moving average. Periods where the price point is blue and close to the 200-week moving average are historically good times to buy.
“Human psychology is a fun thing – when it comes to buying, you don’t want to do it – and we’re in that kind of market right now. It’s safe to say that BTC doesn’t go below these levels, but all indicators indicate that we are close to a generational purchase opportunity.” I’m leaving. “
Hope Robertson says there are several other reasons to consider depositing Bitcoin at this level:
- A bitcoin fear and greed index is a rare occurrence below 10 and historically it has proven to be a good buy level. At this level the indicator has historically been a good time to buy. The index is based on several metrics including volatility, market momentum, social media interactions, straw poll data and BTC’s dominance in the total crypto market.
- U.S. consumer inflation hit a three-decade record high of 8.3%, prompting the Federal Reserve to start raising interest rates – which in turn prompted flight from risk. This, in part, explains BTC’s recent pullback and its increasingly tight relationship with technology stocks. Nevertheless, we are entering a period of creating financial history where interest rates are being raised to help reduce the risk of a deep recession and create a ‘soft landing’; The Federal Reserve may have to decide whether to cut interest rates in the first place. This will allow a huge upward relief in crypto.
How to safely invest instability
The dollar-cost average is a legitimate way to successfully invest in Bitcoin. This involves investing a regular amount, usually monthly, regardless of the price.
The graph above shows the results of regular $ 10 investments per month for the past three years compared to similar investments in the Dow Jones Industrial Index. BTC achieved 182% change as against 17.5% for Dow Jones.
“Not only is the dollar-cost average a great strategy, we’ve seen that if you print the dollar-cost average in Bitcoin below any fear and greed index of 15, you’ll seriously outperform the Bitcoin buy-and-hold strategy (over 70%). It shows you how strong the retrofit investment is, “said Hope Robertson.
Earn 12% annual interest with Revix
As of May 6, Revix USD Savings Vault customers are eligible for 12% Annual Percentage Yield (APY) when they lock funds in USD Savings Vault. The minimum balance is 100 USDC and has a minimum lockup period of 30 days Other terms apply.
Current Revix Vault customers will automatically upgrade to this new version of USD Savings Vault.
How it started
To take advantage of this 12% offer:
- Make a deposit in your Revix account
- Buy at least 100 USDC
- Lock USDC in your savings vault for 30 days
It’s that simple. With a 12.00% APY on a US dollar account, Revix offers higher annual interest rates than any traditional South African savings bank.
Revix Investing in cryptocurrency brings simplicity, trust and excellent customer service. Its easy-to-use online platform enables you to own the world’s top cryptocurrencies with just a few clicks. Revix guides new clients through the sign-up process for their first deposit and first investment. Once set up, most customers manage their own portfolio but can access Revix Team Support at any time.
Remember, cryptocurrency is a high-risk investment. You should not invest more than you can afford to lose and before investing, please consider your level of experience, investment objectives and seek independent financial advice if necessary.
This article is for informational purposes only. Published opinions are not opinions, facts and should not be construed as investment advice or recommendation. This article is not an offer or offer to buy or sell any cryptocurrency.
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