Markets were panicking. But NEO (NEO) $115.22 +25.10% and other major cryptos have no reason to panic.
Every time technical analysis shows markets are bottoming out, a new round of liquidation drags prices to new, previously unthinkable lows. Many are asking if the bubble is bursting, if this is the end of cryptocurrencies.
Look at everything that is happening in the space- major research into regulation by almost every major economic power, Congressional Hearings, ETFs, Futures- this is the entire ecosystem maturing and evolving; that doesn't happen unless the asset is here for the long term. It is just a shock as no other asset class has been so disruptive that it requires a whole new infrastructure around it.
Comparisons with the dotcom bubble are limited as dotcom companies slotted into the incumbent financial infrastructure- they were listed on traditional exchanges, issued equities etc. Blockchain and cryptocurrencies are turning the financial landscape on its head and regulators are inevitably struggling to keep up. Industry stakeholders should welcome sensible, clear regulation as this validates the sector and encourages the “big money” to enter the space.
Prices may well get worse before they get better, and they may stay low for a while. But this is actually good, it shakes out the speculation and helps the asset class become more mainstream.
From an investment point of view, be a contrarian. There is an incredible buying opportunity at the moment. Once the market returns to the bulls, expect all previous records to be broken.