Crypto Market Bleeds As SEC Pressures Mount, Is It Time To Buy?
The crypto market seems to have reached a critical turning point where prices are suffering because of regulatory pressure across the space. This ranges from the United States Securities and Exchanges Commission (SEC) suing Binance and Coinbase exchanges, as well as the Ripple case heating up. These factors led to a sharp plunge in prices, which could present a unique opportunity to get into the market.
Crypto Market Bleeds Red
The days following the heightened regulatory scrutiny have not been easy on the crypto market. As such, most of the digital assets in the space are now nursing massive losses. One example is Bitcoin, which is currently the market leader.
Bitcoin lost its footing above the $26,000 which had been serving as support for the bulls. However, the sellers maintain control of the market and this sell pressure has continuously mounted over the last week, making any form of recovery impossible. BTC is now back in the $25,000 territory after falling 2.30% in the last week.
The second-largest cryptocurrency by market cap Ethereum has also followed the same trend and is performing even worse than Bitcoin on the weekly chart where it is seeing 6.07% losses. This decline has brought its price below the $1,750 support as bulls scramble to hold on.
BNB has been the only token of the top 10 performing reasonably well with 5.12% gains. However, this recovery has sparked questions about whether Binance is dumping its BTC to prop up the price of BNB after it went into freewill following the SEC lawsuit.
Others such as XRP, DOGE, TRX, ADA, and MATIC are all nursing losses over the last week as well, with ADA and MATIC performing especially badly with double-digit losses on their 7-day charts.
Is It Time To Buy The Blood?
‘Contrarian investing’ is a school of thought that suggests that the best time to get into an asset is when its price is falling and investors are scared to get into the market. This is explained by the popular investing saying that says “Buy when there is blood in the streets.”
Given the current market trend, most assets in the space are in the red, and contrarian investing would suggest that this is the best time to start investing in the market. It is further solidified by the fact that the Crypto Fear & Greed Index is moving back into the Fear territory, meaning fewer investors are willing to put money into the market right now.
If this does happen to be a local bottom, it would be a good point to buy cryptocurrencies as another bull rally from here could see Bitcoin reach as high as $35,000. This would mean a 50% increase for investors from here.
As for the crypto market, it is still holding above the $1 trillion mark at this point, showing there is still some strength on the part of the buyers.
