"The moves in the crypto sector have historically been violent, and rallies to the upside and downside have the kind of momentum that's hard for investors in other asset classes to truly understand. It's as if the catalysts driving the crypto sector are viewed as all-or-nothing events, with narratives completely shifting week to week or even day to day, depending on the mood of the market and how they perceive certain pieces of news as they flow in."
"For the world's largest cryptocurrency Bitcoin (CRYPTO:BTC), which is now trading just a hair shy of $100,000 per token at the time of writing, it's been a rocky road in recent weeks. After hitting an all-time high of $126,270 on October 6 (right around one month ago), this token has since lost a little more than 20% of its value over this time frame. If Bitcoin were a stock, that would be considered a bear market for this particular project."
"There are forever Bitcoin bulls such as Michael Saylor or Cathie Wood who have put forward seven-figure price targets for Bitcoin in the past who believe this token is worth buying at almost any price. And then there are the more conservative traders and others who believe that near-term catalysts are much more important to watch, and timing Bitcoin purchases and sales is more important than holding long-term."
Crypto markets show extreme, rapid price moves driven by shifting narratives and investor sentiment. Bitcoin reached an all-time high of $126,270 on October 6, then declined by more than 20%, trading near $100,000. Price momentum in crypto often behaves unlike other asset classes, with catalysts treated as all-or-nothing events and narratives changing quickly. Prominent bullish investors project very high long-term targets, while conservative traders prioritize near-term catalysts and timing purchases and sales over simply holding for the long term. These differing philosophies shape valuation views and trading approaches.
Read at 24/7 Wall St.
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