A trader said what he is doing in a bitcoin collapse

Practicing trader and ForkLog Hub resident Pavel Gromov talks about the current situation on the market, alsoknown as "Chief by crypt."

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The last day will take its place in historythe cryptocurrency market as Black Thursday, smoothly flowing into Black Friday. A day ago, bitcoin was trading over support for $ 7,500, but soon market participants saw completely different numbers.

First, support fell at $ 7500- $ 7300, afterbringing the price within minutes was below $ 6,000. After 12-hour consolidation in the range of $ 5700- $ 6100, the price of the first cryptocurrency continued its free fall, updating the annual minimum below $ 4000.

At the time of writing, the asset is trading around $5,000. Market capitalization &#8212; $147 billion, dominance index 64.4%.

The grand sale was influenced by the situation in traditional markets. US indices fell by almost 10%, and this was a record drop since 1987.

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Statements by the Federal Reserve on measures to support financialthe system (i.e., the injection of new money into the economy) was only enough for a small attempt at a rebound of the S&amp;P 500, after which the index continued to fall. Asian indices followed the same path, showing a fall of 8-10%. Even gold is falling; in one day the price dropped from $1,640 to $1,559.

The crypto market has returned to the values ​​of March 2019.What to expect next if Bitcoin falls along with the stock market, where the collapse is just beginning? As practice has shown, Bitcoin showed an inverse correlation with the S&amp;P 500 with minor drops caused by local problems.

When the stock market does not have a correction or a slight decrease, but a collapse within a few weeks, bitcoin falls along with the stock market and even overtakes it due to its small capitalization.

Now is the first global crisis for the entire existence of Bitcoin. We will see for the first time how Bitcoin behaves in such conditions.

Obviously, investors perceive it asventure asset, and sell when problems arise. The decline in bitcoin to the levels of the beginning of 2019 provokes a panic and a massive drain, which makes everyone even worse and the collapse continues.

What am I doing personally?

Firstly, I do not sell bitcoin at such prices. Everyone should understand that bitcoin, which often gives extra profit, is not a deposit to Sberbank, but a high-risk asset. You can invest in such assets only the amount whose loss does not affect your standard of living.

Any crisis &#8212; the phenomenon is temporary, followed by recovery. Bitcoin is scarce, its growth in the medium term is inevitable.

Many regretted not buying $ 3200 bitcoin in 2018. Now there is an opportunity to fix everything. And I am considering it.

Secondly, I do not advise buying altcoins. They have no bottom. I consider only ETH and BNB for a small part of the portfolio.

When is the growth?

When will the situation with coronavirus turn around?and a reversal or at least stopping the fall of stock markets. This can happen quite quickly &#8212; either a vaccine will be invented, or the virus itself will subside, or the markets’ reaction to the virus will weaken.

No crisis lasts forever, and any panic and fear also has a beginning and an end.

Bitcoin's medium-term prospects are even betterbecause the main anti-crisis measure that central banks are now using &#8212; injecting new money into the economy. And this &#8212; inflation and fiat depreciation.

Remember that crisis is opportunity.

Bitcoin collapse and the crisis in the financial markets live: opinions, estimates, forecasts

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Financial market forecasts are privateopinion of their authors. Current analysis is not a guide to trade. ForkLog is not responsible for the results of work that may arise when using trading recommendations from the submitted reviews.