Bitcoin Hit $12,000, is it a Good Time to Invest?

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Edward Valencia
Aug 3 . 2 min read

We’re seeing signs of a strong bull run ahead in the crypto space. We can see fundamentals begin to take a role in analyses by maintaining a support level of $11,300 despite the flash crash of $1,200 on Sunday, August 2nd. Many people may start to give in to the fear of missing out similar to what we witnessed 3 years ago when BTC hit $20,000.

The recent bounce back to $11,000 was due to bulls taking the lead. On Monday, August 3rd, trading began with a $150 “gap” in Bitcoin futures markets on CME between $11,450 and $11,600. So with increased volume and greater activity in the decentralized finance (DeFi) space, we can continue to see a strong upwards trend.

What’s the hype this time? Well, one big factor for why bitcoin surged was due to the new retail investors that traded with the intention of ‘getting rich quick’ we’re most likely to see the same situation but in the DeFi space. Back in 2017, there was an ICO boom that interested many investors familiar in the space but now DeFi will take the cake. With derivatives, credit markets, non-fungible markets, the methods to invest have expanded. This opens up greater opportunities for veterans in the space to make greater gains than just holding cryptocurrencies. Ether, creator of DeFi, has been the greatest performing asset when compared to its other well-known competitors.

When we see the BTC dominance go below 60% we can be confident that we’re entering into an alt-coin cycle and when people diversify in other coins the entire market rises. New investors become excited and inject more money into the market, raising the market cap of the entire crypto space. I tell all my clients to practice self-control along with calamity when it comes to financial markets, especially highly volatile ones like crypto.

How to Invest in these times? When entering the space it’s best to take the time to learn as much as you can about the technology and projects before investing a single cent. Once you determined a long-term strategy, gradually build your portfolio until you hit your limit to invest. When things seem like they’re going to skyrocket or take a dump, stick to your plan! Be sure to take profits on the way up so you have free capital to reenter the market when a major correction happens. Although, many traditional investors will tell you that this is nothing but a gamble you have to stay grounded on what you believe the technology be while being humble enough to have an exit strategy in place in case Internet 3.0 doesn’t go according to plan.

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