The latest days have been very red for the crypto markets. No wonder, because they have been going a bit too good for a long time already. Without a lot of fundamental support to lean on sell-offs can cause massive movements on the market. But have no fear, this is a good thing.
When looking at the total market capitalization for cryptos it is pretty obvious that things have been going a bit too good as of lately.
Mix that with the fact that we are in Christmas times were a lot of people like to take home some gains for gifts and the fact that some counties declare their taxes around time and this set-back has been logical.
Not only that but even more a lot of people who have bought cryptos have never invested in anything else before. That means that they panic easily and start selling even though their original plan was to hold long.
This does not have to be a bad thing if you can time your sell and buys relatively well. And traders love how we have such massive movements in the market. If you can earn as many % in one day as others do in a year and you keep doing that day by day then soon you will sit on a lot of cash.
I know how easily a small investment can turn into something bigger as I wrote before about turning 8$ into 880$. Imagine doing that once or twice a week for a year, it would eventually result in some pretty amazing gains!
But to stay on topic I´d like to point out that this consolidation most likely is a healthy thing. When we have higher buys and more support less people want to sell lower and for each time we move up and up.
And the best thing about it? Well of course it is cheaper to buy more Bitcoin!