TechFlow news, Kelvin Koh, co-founder of cryptocurrency asset management firm Spartan Group, summarized six key points on Bitcoin's overnight plunge:
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This kind of market correction in the crypto space is not uncommon. As the market continues to climb, we will see several more such instances this year.
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The market will rebound quickly. Idle funds will be deployed. The fundamentals remain unchanged.
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This sell-off will clear the leverage and positions built up over the past few weeks, setting the foundation for the next leg of market upside.
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Your portfolio should have withstood this sell-off. If you got liquidated, you need to improve your risk management. Even in a bull market, the market will ruthlessly weed out the weak in this manner.
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If you've been waiting on the sidelines so far, this is your chance to enter. Bitcoin won't drop to $42,000, so don't try to be too clever.
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If you've been considering buying a certain cryptocurrency, now is a good time to do so.
