Faced with a scenario of sharp fall of almost all crypto-coins, analysts highlight the moment to keep calm and opportunities in the market
Across the world, investors are desperate on Friday (22) because of the fall of more than 20% of bitcoin and the collapse of virtually all crypto-coins that exist. But how far is this really a cause for panic? At the moment, who is against
currency is worth mentioning that "the bubble burst", but is it really the same?
Basically, analysts are stressing that there is nothing to worry about, and that this is a natural market move. The chief economist of criptomoedas of XP Investimentos, Fernando Ulrich, highlighted in his Facebook that falls even worse than this already happened.
"I started studying the technology after a 77% drop in February 2013. I saw bitcoin fall 90% the next year ... Ignore the price, study the technological invention. It's much more interesting," said the specialist. At InfoMoney, Ulrich said this fall is salutary, which will contain the "good oba and euphoria". According to him, the retreat of this sixth is necessary and will help the bitcoin to "grow with more sustainable bases".
In addition, the economist also points out that an investment opportunity may have been opened at this time. "Whoever looks at the long term may be a window of purchase. But it is worth remembering that this is a market with relevant risk," he said. It is worth remembering that at the beginning of the month, Ulrich had already said not to buy bitcoin in the face of the strong bullishness of the currency (click here and remember).
But the economist Richard Rytenband, highlighted the risky moment that the market already demonstrated according to the Multifractal Fragility Index (understand how it works by clicking here). "In the last week the level of fragility has risen to extremes and time scales have lined up, further reinforcing the possibility that a sharp price discontinuity was imminent," he said.
He explains that "when the level of fragility rises to extreme heights it is a warning of a Noah effect - in reference to a dluvian, or strong fall - en route and its intensity depends on the time scale we are visualizing." "Regardless of the scale is a time when we will have more disadvantages than the advantages to be exposed," says Richard remembering that the best moment of exposure is when the levels are negative fragility (antifragilidade).
Finally, the economist reinforces that the price variation is not something so common, belonging to what is called the domain of fat tails. "Beware of traditional standards-seeking tools," he said, adding that investors should not just look at prices.
In more technical terms, Mineirama founder and InfoMoney professor Nickolas Goline explains that this fall is caused by a "mining move" that left Bitcoin to mine Bitcoin Cash, which is more profitable at the time. "This causes a problem in the Bitcoin network since the blocks start coming out with much more than 10 minutes of delay (yesterday we only had 5 blocks mined in 2 hours while we should have 12)," he said.
In this scenario, the expert warns that the network takes 1 week to adjust the difficulty. "As the deals are extremely slow people stop buying, so the value drops a lot," said Nickolas, recalling that there are still several other factors behind the bitcoin losses.
Finally, he explains that once the difficulty sets in, miners will go back to Bitcoin, as it will be much easier to mine than Bitcoin Cash, which increases mining profits. "Unfortunately Bitcoin still goes through this kind of market manipulation," he says.
For Nickolas, "who has the resources available, this is a great moment of purchase." "For those who bought it on high: patience, the value will eventually come back and even pass the last historical high, do not despair," he says.
Abroad, analysts are also pointing to the natural setting of criptomoeda correction. In an interview with MarketWatch, analyst Neil Wilson of ETX Capital said it was hard to say that it was all over for bitcoin. "We can easily see this market rebound in a very short period," he said. He sees some conventional profit making in the market.
"Although there have been some hacks, internal struggles in the mining community, many rumors of forks and regulatory pressure on some fronts, this is likely to be a simple risk-selling attack as investors rebalance by the end of the year ", concluded the analyst.