The Federal Reserve's intention to raise interest rates to contain inflation has prompted investors to flee risky assets. As a result, the cryptocurrency market has taken a hit in recent months, going from nearly $ 3.000 trillion worth to less than $ 1.000 trillion at the time of this writing. If the digital asset market remains depressed for a long period of time, the so-called "cryptocurrency winter", long-term investors have the opportunity to buy the best tokens at discounted prices. Here is what is the best cryptocurrency to buy at a discounted price for invest long-term money.
Bitcoin: the king of crypto
There aren't many cryptocurrencies that can say they've gone through multiple crypto winters. For this reason alone, Bitcoin deserves to be part of any wallet during the sustained downturn in the cryptocurrency market.
In addition to Bitcoin's proven track record during the cryptocurrency winters, its performance when market conditions are more ideal is even more important. Let's take a look at the last cryptocurrency winter. Most people agree that the previous cryptocurrency winter occurred in 2018. Despite hitting an all-time high of just under $ 20.000 in December 2017, for most of 2018 Bitcoin and many other cryptocurrencies have been continuously recording. lower lows. Bitcoin eventually bottomed out at around $ 2018 at the end of 3.000.
It is on the bottom that there is more to be gained
Now, you shouldn't be trying to time a market, but investors who have consistently invested in Bitcoin throughout 2018 would have been extremely well positioned to achieve staggering returns when the bull market returns. Just for a little reference, if you had invested $ 1.000 in Bitcoin when the all-time low in December 2018 hit, that same investment would eventually have been worth nearly $ 20.000, assuming you held out until it hit. a new all-time high in November 2021 just under $ 70.000.
If you look at other cryptocurrency winters, such as 2014, a similar pattern emerges. After hitting a previous all-time high of just under $ 1.000 in December 2013, Bitcoin was dry throughout 2014 and most of 2015. From $ 1.000, Bitcoin slipped to a few hundred dollars in 2015. If you had been convinced to invest $ 1.000 at the 2015 low and held out to the next all-time high, which reached nearly $ 20.000 in December 2017, your investment would have turned into around $ 75.000.
Of course, hindsight is always 20/20, but the goal is to prove that Bitcoin is no stranger to the cryptocurrency winters and consistently produces returns once the downturns are overcome. Conditions today are more or less the same as in previous cryptocurrency winters. Those who add Bitcoin to their wallet when market sentiment is down have a chance to earn more when conditions improve. For this reason alone, cryptocurrency investors should add more Bitcoin to their wallet during the cryptocurrency winters.