The market for altcoins used to be very strong, but right now it’s in a big slump. Prices have dropped by 40–90% in the last few months. This is similar to past market crashes, but it’s happening much more slowly… which worries investors. It will take a long time and hurt a little, but famous crypto expert Daan Crypto thinks this is the right thing to do.
People who have been interested in cryptocurrencies for a while may know what’s going on. A lot of assets are losing a lot of value as the prices of altcoins drop sharply on the market. There were quick drops during the 2020 pandemic crash, but this bear market drop is slow and will last for months.
Altcoin Decline Slower, Investors Anxious
Even though things look bad, Daan Crypto points out a major difference between this market crash and others. Even though the drops are major, they are happening more slowly, which suggests that the adjustment phase will last for a long time.
This slow drop is good and bad for investment. It makes the shock less rapid, but it also makes the financial strain last longer. The good news, according to Daan Crypto, is that altcoins didn’t hit as high of highs before the crash. In past cycles, altcoins went through a lot of growth before they crashed. This time, they didn’t go through as much growth before they crashed.
The market might not be as overheated as it was before the crash, as shown by the relatively low highs before the crash. This could mean a faster rebound once the correction is over.
Looking ahead, Daan Crypto sees similarities between the market now and what will happen in 2020. He or she talks about how well the market did in 2023, which was especially amazing since it came after a year of bear markets. This is like how busy the market was in late 2019, right before it crashed in 2020.
Daan Crypto sees some interesting similarities between the years 2023 and 2019, as well as between 2024 and 2020. Something like how 2020 had a drop in the middle of the year and then a big rise at the end of the year could happen in 2024.
People who are tired of the current economic slump can take comfort in this comparison to the past. Having a rebound at the end of the year like in 2020 could really help the market.
