Bitwise CIO: Putting emotions aside, history shows that weekend sell-offs are a buying opportunity

ChainCatcher news, Bitwise CIO Matt Hougan posted that, setting aside emotions, history shows that the sell-off this weekend is a buying opportunity. He cited the example of the market crash on March 12, 2020, and stated that these changes indicate the importance of Bitcoin will continue to rise, not fall.

The significant pullback in the cryptocurrency market may be self-reinforcing, creating a downward cycle that needs to exhaust itself before hitting the bottom. This is because, as prices fall, leveraged traders face margin calls and are forced to sell. Currently, there have been over $1 billion in futures liquidations, and it is still unclear whether the bottom has been reached.

Matt Hougan stated that the real advice is to ignore short-term factors and look to the long term. Bitcoin is a volatile asset with large price swings. It has always been this way, and this situation will continue for some time. Moments like this once again prove that timing the market is foolish.