Should you buy crypto after a flash crash?

[ad_1]

Last week (December 3-10) reminded investors of the extent of crypto’s short-term volatility. In less than 12 hours on Saturday, December 3, Bitcoin (BTC) fell from $ 53,000 to $ 42,000 before rebounding to settle just below the $ 50,000 range. Three main reasons are suggested as to why this accident happened, and all indicate that it is temporary and that the running of the bulls continues. As such, current prices provide an attractive entry point into the market.

The uncertainty caused by the Omicron variant has had adverse effects in global markets. Markets fell on news of the discovery of the new variant in the United States, with the Dow Jones Industrial Average falling 2.5% late in the day. This has led to the risk reduction of many investment portfolios and has contributed to a drop in the prices of crypto. Second, in an attempt to curb rising inflation, the US Federal Reserve has announced its intention to aggressively cut its bond buying program. Finally, the combination of high leverage accumulated in the crypto markets over the past few weeks and characteristic weekend liquidity has made matters worse. What could have been a much more modest crash was exacerbated by the liquidation of leveraged positions in a self-sustaining cycle with more than $ 2 billion in long positions liquidated last weekend.

The root cause of flash crash can be summed up in one word: “uncertainty”. While the above reasons are of concern, none of them point to medium to long term risks that will affect the overall rise in the crypto market. As Warren Buffett once said: “Be afraid when others are greedy, and greedy when others are afraid.” Currently, there is more Bitcoin leaving exchanges than entering exchanges. This mismatch between supply and demand is a possible indication of a supply crunch and the spark of a resurgence in the bull run.

Market uncertainty and high volatility are inherent traits of the crypto market. The average investor does not have the time to thoroughly research and allocate capital for crypto. This is why Invictus Capital has created a professionally managed crypto index fund, Crypto10 Hedged (C10).

C10 gives you exposure to the top 10 cryptos by market cap and protects you against the market correction with dynamic USD cash hedging. Over the past week, the price of BTC has fallen 11%, Ripple has fallen 18.5%, and LTC has fallen 23%. By comparison, C10 Hedged held significant cash reserves, dropping only 2% and quickly returning to a cryptocurrency-dominated portfolio. By entering and exiting interest-bearing cash positions at appropriate times, C10 aims to sell at a high level and re-enter the market at a low level, protecting the downside and increasing returns.

Invest in C10 today to gain passive exposure to the crypto market, knowing that C10’s dynamic cash hedge supports you if the market falls. With a management fee of just 1.7% and an annual return of 338%, C10 Hedged is the ideal index fund for new and seasoned investors looking for exposure to the crypto market without having to rebalance their portfolio. , trying to time the market. , or choose specific crypto assets.

Potential investors can create an Invictus account here, visit the website for more information, or schedule a call with a dedicated fund specialist. You can also contact Sales directly at +1 (345) 769-7491 between 7:00 a.m. and 4:00 p.m. GMT.

This is a paid press release. Cointelegraph does not endorse and is not responsible for the content, accuracy, quality, advertising, products or other elements of this page. Readers should do their own research before taking any business related action. Cointelegraph is not responsible, directly or indirectly, for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, good or service mentioned in the press release.

[ad_2]