Currently many cryptocurrency investors wonder whether they should buy, sell or hold their favourites altcoins since the crypto market seems to have very unclear short term future.
The first question is why the market isn’t moving with 100% or 1000% upswings, why it is stuck and in some cases going down. There are a number of factors that might be the reason for this kind of behaviour.
Well, it is Sumer, when many biggest investors (which usually are some high net worth individuals or companies) that have a greater effect on the market are not as active due to the summer holidays, therefore money is not pouring in.
At the same time, cryptocurrency market has recently shown a substantial growth on many altcoins in general and Ethereum in particular, providing a 225% growth in just 25 days.
After a heavy buying, and price reaching key technical levels of resistance, profit taking has taken place resulting in the money flowing out of cryptocurrencies. In simple words, investors could have fixed their profit and moved it back to fiat currencies for spending, which might be the reason for a decline in the overall cryptocurrency market cap.
The market is moving in waves and obviously, we can’t expect a nonstop exponential growth all the time. In general, cryptocurrencies just starting to gain popularity all over the world and the “next big wave” could be just around the corner. At the same time, investors shouldn’t just blindly hold their favourite altcoins, but rather try to learn do in-depth study and research on chosen coin before committing any funds to it.