Maybe. Judging from the last few days, it does seem that the crypto market is looking north again. I mean BTC did rise to nearly 40K for a short period of time yesterday. But as to whether this slight spike is due to bullish sentiments in general or just another quick bounce, I am not too sure. And it is kind of hard to tell from what is currently happening in the crypto markets. This recent upturn does not seem to be that enthusiastic if you ask me, especially considering that the gains themselves are not that impressive (in terms of the crypto markets where before it was possible to see a 50%-60% raise within a day). A few of my fellow traders seem to be sitting this recent upturn as well. Perhaps they were very much jaded by the late June and early July dump? I know I was too. But could this be the start of a reverse trend we are seeing? And will the rally be able to be sustained or will it lose steam?
The last few days we did see a number of positive news coming out – like Amazon seeming hiring crypto experts, that “B-word” conference or whatever and of course BTC hashrate starting to creep up. Perhaps investors and traders are starting to see things looking up for cryptocurrencies in general? Plus the upcoming Etherum London upgrade and Cardano starting their smart contracts upgrade as well. Very very positive news. But honestly I was caught by surprised that there was such a rally the last few days. Even though there were plenty of good news, there were still some very gloomy news too. Regulatory authorities around the world are still not convinced about cryptocurrencies and many are starting to clamp down in centralized exchanges (the biggest being Binance) and even decentralized exchanges (just look at Uniswap recent delisting of certain tokens). There was even an article by some government advisor saying that it is time for governments to ban cryptocurrencies for good. No, not kidding here. Someone without much understanding of cryptocurrencies telling governments around the world to ban cryptocurrencies is pretty interesting to say the least. And China seems to be going even stronger against miners in the country. More and more provinces have shut down or started shutting down the miners. With that and governmental regulations, I am sure lots of Chinese investors and traders will not be so willing to invest in cryptocurrencies either. Could we see an outright ban from China? It is a scary thought seeing that there are quite a lot of Chinese investors in the cryptomarket. That would surely have an impact of the market on the whole.
So should you start going into the cryptomarket right now? I have no idea. Too many negative indicators in my opinion. I would be doing a wait and see approach for the time being. However the dollar cost averaging investment strategy still works for me. And I did and will continue to put a portion of my salary into crypto investing every month. And when the prices are low (relatively speaking of course), it is always a good time to invest. Especially if you are going in for the long term.
I am no financial advisor. So please always do your own research when it comes to investing and trading. It is your money and you should be careful on where to invest them in.