Originally published on: December 10, 2024
According to a hedge fund manager specializing in crypto investments, the current market conditions suggest that traders will have an extended window to capitalize on buying opportunities this cycle. Daniel Cheung, co-founder of Syncracy Capital, predicts that the traditional “buy the dip” strategy will remain relevant for a longer period than expected.
Cheung notes a shift in traders’ mentality towards short-term profits, resulting in increased intra-month volatility. Despite the recent 5.41% drop in total crypto market capitalization, Cheung remains optimistic about the potential for market recovery.
In a recent analysis, crypto research firm Santiment highlighted the significant losses experienced by several altcoins in the top 100 rankings. With coins like Kaia (KAIA), Stellar (XLM), and Flare (FLR) taking substantial hits, retail traders are cautioned against hasty reactions that could further disrupt the market.
Pav Hundal, lead analyst at Swyftx, views the recent pullback as a temporary setback, attributing it to the liquidation of leveraged long positions. With over $1.58 billion in long positions closed in the past 24 hours, Hundal anticipates a more stable market moving forward.
Cheung emphasizes the challenge of timing markets accurately, recalling previous cycles characterized by a “hodl and buy the dip” approach. He believes that the current wave of uncertainty surrounding market tops indicates a prolonged uptrend for crypto assets.
As experts analyze the recent market fluctuations, Bitfinex analysts project less severe Bitcoin price dips following the easing of selling pressure. Despite the unpredictability of crypto markets, strategic investments and informed decision-making remain essential.
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