Nicholas Merten, known as DataDash, talks about the recent big drop in Bitcoin's price. He says it's one of the worst days for Bitcoin since the FTX collapse, with prices falling by 10-20%.
Merten explains that Bitcoin's price isn't staying above important price levels, which is a bad sign. He thinks this could mean more price drops might happen.
According to Merten, there are a few reasons for this market downturn:
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Some financial moves between the Japanese yen and US dollar are unwinding
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There are political tensions in the Middle East
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Tech company stocks might be overvalued
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The crypto market itself isn't very strong right now
Merten advises investors to be careful. He says, "don't get caught in the idea that everything is just going to be happy papy La La Land we're always going up into the right." In other words, don't assume prices will always go up.
Instead, he suggests:
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Being picky about when you buy
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Being willing to sell for a profit or a loss when needed
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Focusing on keeping your money safe rather than trying to get rich quick
Merten's main message is to protect your money in this risky market. He advises, "learn from those losses and mitigate them when you can." He thinks it's more important to avoid losing money than to always be optimistic about the market.
