How Falling Prices Could Present an Opportunity for Investors
Bitcoin, Ethereum and pretty much every other cryptocurrency out there are not having a very good week. And while that’s not great news for market watches antsy to see how this latest crash pans out, it could be a golden opportunity for investors to get into or increase their cryptocurrency holdings.
Options on the future of Bitcoin are pretty evenly spread between those who think it will go to the moon and those who think it will crash and burn.
The crypto market has been notoriously difficult to predict; however, historically, when we’ve seen Bitcoin and Ethereum crash, they were very closely followed by large upward price movement. 2013, 2016 and 2018 all saw Bitcoin crash, losing over 80% from previous highs, before recovering and ultimately peaking at new highs.
Other experts are focusing their attention on Ether, with many predicting long-term upward momentum.
Unlike Bitcoin, which solely functions as a digital currency, Ether is the coin native to Ethereum, a powerful, programmable blockchain used for running everything from money transfers and financial products to digital applications and NFTs.
For investors still squeamish of riding out the highs and lows of cryptocurrency, there are other options. Companies like TechX Technologies Inc. (CSE: TECX / OTC: TECXF / FRA: C0B1), offer diversified crypto exposure as an alternative to direct cryptocurrency investment.
What’s Happening with the Bitcoin and Ethereum Crash?
On May 19th, markets saw Bitcoin plunge 30% to a low of $30,001 before rebounding just over $40,000. However, the sell-off continued over the weekend, with Bitcoin trading as low as $32,000 on Sunday before rising back up to $38,989 Monday.
This tumultuous week of trading saw Ether down almost 60% from previous highs landing at $1,739 before climbing back up to $2,600 Monday.
While the crypto markets have always been volatile, this week saw fresh uncertainty. New restrictions coming out of China, barring financial institutions from engaging in most crypto transactions, caused cryptocurrencies to crash on Wednesday. Shortly after, the US Treasury announced stricter cryptocurrency rules, requiring all crypto transactions over $10,000 to be reported to the IRS.
Elon Musk, the infamous Tesla CEO, sent Bitcoin into a tailspin when he announced that Tesla would no longer accept the cryptocurrency as a means of payment, reversing a months-old decision to allow customers to use it for vehicle purchases.
Crypto market losses have mostly recovered after weekend losses, with Bitcoin and Ether up 11.5% and 23.81%, respectively, from Sunday’s lows.
So, Is Now A Good Time to Buy Bitcoin?
While this past week saw a massive pullback in Bitcoin, some analysts believe that current market conditions present an opportunity for investors to get into Bitcoin at prices they may not see again. In terms of price averaging, if you were a buyer before at higher prices, then you should also be a buyer now.
Other analysts warn that despite investor enthusiasm, the bitcoin sell-off isn’t over yet, and predict prices will drop further in the near future.
The chart shows some Bitcoin support at $30,000, but it may encounter resistance breaking above $40,000 in the short-term.
ETH: Long Term Upside Potential
Ethereum, on the other hand, is presenting a different chart trading pattern entirely. According to analysts, Ethereum has formed what is known as a cup-and-handle pattern, a typically bullish signal that is often followed by upward price momentum.
Chart patterns are a fundamental tool used in the technical analysis of market trends and price movement.
The current chart seems to support the idea that, in the long run, trading volumes for Ethereum and other cryptocurrencies will increase. Investors should keep an eye on crypto exchanges like Coinbase and Binance, but also on smaller players like TechX Technologies Inc.
TechX Technologies Inc is a Canadian company that offers investors exposure to cryptocurrency markets through a strategically cultivated portfolio of crypto, technology, and blockchain companies.
Fiat-to-crypto is simply the process of taking your currency, CAD, USD, or any other fiat money and using it to buy crypto. With TechX’s XPort platform, the process is about as straightforward as a standard currency conversion.
As advanced and decentralized as the cryptocurrency market is or wants to be, it still relies heavily on fiat currency. Years ago, the process of getting from fiat to crypto could take days to complete – most exchanges would only allow individuals to trade crypto for crypto. You could trade Bitcoin for Ether, but you couldn’t buy Bitcoin with USD without going through multiple steps.
Some exchanges started facilitating fiat to Bitcoin buys, but coins still needed to be transferred to another crypto-to-crypto platform to purchase other altcoins, like Ether, Uniswap, or Dogecoin.
To meet growing demand, some newer, more advanced exchanges now include the ability to conduct fiat-to-crypto transactions, a feature that has set them apart from the competition.
About TechX Technologies Inc.
TechX is an emerging fintech company that helps emerging technology-based companies in crypto, blockchain, AI and cloud technologies up their game. By leveraging experienced leaders and a diverse advisory board, TechX provides subject matter expertise, unlocking value and fast-tracking growth.
TechX has invested in a portfolio of companies offering various market-ready solutions throughout all stages of the cryptocurrency technology funnel. Their secret lies in their ability to connect portfolio companies with one another, inspiring innovation and creating network connections, resulting in future-ready solutions with enormous revenue potential.
The company has been performing well. In April, TechX announced one of its wholly-owned portfolio companies, Catalyx, reported massive Q1 growth, with trading volume increasing 91% from $14.88 million in February to C$28.44 million in March and deposits growing 163% to reach $9,119,408.