Break out your scarves and mitts…
News headlines in the cryptocurrency industry are rarely quiet for very long, and after a rough summer, the market is now entering a ‘crypto winter’.
Last month, the founders of two of the largest cryptocurrency exchanges – Binance and FTX – had a public Twitter fight that triggered the collapse of one exchange and a failed bailout deal from the other.
Unsurprisingly, these events have caused widespread panic across a market that has barely recovered from several major failures earlier in 2022, with Bitcoin falling by more than 18% during these events.
Is this the beginning of the end for this alternative asset class?
Comparisons with the dot-com crash of 2000 have been rife in the market, but crypto-enthusiasts argue the basic premise of dot-com stocks was correct: the internet is the future. They believe cryptocurrency is the same, predicting that the sector will recover.
Naturally, due to the volatility of crypto markets, it’s impossible to predict future price changes accurately.
Crypto-enthusiasts expect the crypto marketplace to grow and evolve into an essential part of the global economy. There’s no guarantee as to which camp is correct or if the answer falls somewhere in the middle. In the end, only investors and buyers can determine the true value of digital assets.
Thankfully, financial advisors have the tools and investment knowledge to help investors build more resilient portfolios. We can help you build one that thrives in various economic scenarios and aim to deliver more income – for today and well into the future.
To get started, reach out online or call us at (843) 475-3038 and book a complimentary 15-minute consultation.
