The crypto crash lasts until Monday. Despite some positive signs yesterday that saw many top tokens rally, investors saw fit to resume selling on Monday. As of 11:30 am ET, top cryptocurrencies Cardano (CRYPTO:NO), chain link (CRYPTO:LINK), and The Sandbox (CRYPTO:SAND) decreased by 6.5%, 6.2% and 9.1% respectively in the last 24 hours.
Macro headwinds continue to pound the crypto sector, with cryptocurrencies trading in line with stocks enjoying incredibly bearish sentiment today. Future rate hikes on the horizon have dampened demand for riskier assets as investors are now largely looking for safe havens. Additionally, a paper from the Central Bank of Russia last week that highlighted a plan to ban all cryptocurrencies was not well received by investors over the weekend.
Regarding token-specific catalysts, a recently released Cardano-based decentralized exchange, SundaeSwap, has reportedly experienced technical issues after going live last week. This has hurt the otherwise optimistic sentiment this eco-friendly proof-of-stake blockchain network has been seeing lately.
Chainlink’s oracle network and The Sandbox’s metaverse/gaming orientation have not provided strong enough tailwinds to weather the gale force winds this market is currently offering. Investors just seem to be moving away from risky sectors, even if that means selling some of the best tokens in their respective niches today.
Cardano, Chainlink, and The Sandbox are three cryptocurrencies that many experts believe are among the highest quality tokens in their peer groups. Those intrigued by crypto’s growth prospects in general certainly have reason to consider these tokens during such dips.
Right now, many investors are wondering if the recent declines we’ve seen in quality stocks and cryptocurrencies have fully priced in the risks that the market is anticipating in the near term. If not, we could be in for a bumpy ride.
Investing in any asset involves some risk. There will always be volatility in asset prices and some assets are more volatile than others. For those with a shorter investment horizon (such as those retiring or nearing retirement) it may not be advisable to hold highly volatile assets during years when capital may be required to support one’s lifestyle to support.
For those with a longer investment horizon and who are able to deal with the mental anguish that short-term volatility can bring, now might be a good time to start buying quality stocks and cryptocurrencies. Sure, the market is in insane sell-off mode. It is likely that this is not the bottom and there is more room to fall.
However, when there is extreme fear in the market, level-headed, long-term investors typically wake from their hibernation and start buying.
This article represents the opinion of the author, who may disagree with the “official” endorsement position of a Motley Fool premium advisory service. We are colourful! Challenging an investing thesis — including one of our own — helps us all think critically about investing and make decisions that help us be smarter, happier, and wealthier.