Originally published on: December 10, 2024
A prominent crypto hedge fund manager predicts that the time window for traders to capitalize on buying opportunities during this cycle will be more extended than anticipated, following a recent downturn across the broader crypto market.
According to Daniel Cheung, the co-founder of Syncracy Capital, traders have adopted a more short-term trading approach during this cycle, with a constant focus on taking profits. Cheung believes that the pullbacks in the market will present a “buy the dip” scenario for a longer duration than expected.
Recent data from CoinMarketCap shows a 5.41% drop in the total crypto market capitalization to $3.44 trillion over the past 24 hours. Altcoins that have seen significant gains since October experienced notable price declines, including Kaia (KAIA) down 31.3%, Stellar (XLM) with a 28.3% drop, and Flare (FLR) down 26.9%.
Santiment, a crypto analysis firm, suggested that if retail traders panic and sell off their cryptocurrencies hastily, it could trigger a strong market recovery. Pav Hundal, the lead analyst at Swyftx, described the recent market pullback as a minor setback, noting the impact on leveraged long positions in the market.
Cheung emphasized the complexity of timing markets and highlighted how previous cycles saw participants adopting a “hodl and buy the dip” strategy. He anticipates a longer-than-expected uptrend in the crypto market this time, with many attempting to predict the market top.
Bitfinex analysts also weighed in on the situation, predicting that future Bitcoin price dips may not be as severe as the recent plunge, given the easing selling pressure after Bitcoin’s surge past six figures.
As experts provide insights and data on the crypto market fluctuations, it is essential for readers to conduct their own research before making any investment decisions. Remember, all investment and trading activities involve risks.
