Bitcoin, until the recent LUNA-UST crisis was speculated to have been trading within an accumulation zone to strengthen its rally. However, the scenario differed to a large extent when the star crypto faced a massive rejection on its way to $50,000 in the last few days of Q1 2022. Further, the LUNA-UST crisis dragged the BTC price towards a 10-month low level strengthening the bears at the press time.
Partner at the crypto fund, Pantera Capital, Paul Veradittakit believes it is a great time to invest in long-term high-liquidity cryptos which are trading at more accessible levels. He believes that the prolonged weakness outspread in the markets may eventually squeeze out the more successful long-term projects.
In an blog-post surveying the current bear market, Veradittakit mentioned the the reasons why this is the best time to invest in the current bear market which include,
- In the bear market, the companies and the various platforms are more focused on building and entrepreneurs jump in for the right reasons
- New talents enter the markets
- Favourable valuations
- Investors find great value in long-term successful companies in these times
Collectively, Veradittakit says that the best performing companies so far have emerged from the last bear market and hence asks the crypto-verse to be patient, mission-driven and resilient.
Which ‘High-Liquidity’ Long-Term Assets Can be Considered?
High-liquidity, long-term assets are basically those which can withstand a huge liquidation. No doubt it may have an adverse impact but manages to sustain the trembled situation quickly.
Bitcoin is the best asset that fits this case. The recent Terra-UST crash was the best example of when BTC’s price stabilised notably overcoming the liquidation of 80,000 assets. No doubt the price quickly fell down to a 10-month low, yet managed to recover to some extent.
On the other hand, the second-largest crypto Ethereum displays more stability than Bitcoin. Recently, the rounds of the co-founder of Ethereum, Vitalik liquidating 30,000 ETH outspread the crypto space. But it hardly impacted the ETH price. On the contrary, the upgrades on the platform also do not impact the price to a large extent.
Along with the top 2 cryptos, assets which have sustained a couple of bear markets may be considered for long-term positions. Primitive tokens with strong fundamentals like XRP, ADA, SOL, AVAX, etc and many more can be considered as high-liquidity, long-term assets.