Home Altcoins News Ethereum Bitcoin Solana Doge Coin and Every Crypto is Vulnerable to Risk on and Risk Off

Ethereum Bitcoin Solana Doge Coin and Every Crypto is Vulnerable to Risk on and Risk Off

Ethereum Bitcoin Solana Doge Coin and Every Crypto is Vulnerable to Risk on and Risk Off

Bitcoin is a risky asset that is getting hit when the investors want to go risk-off.  When investors go risk-off it is not good for BTC.  This is also true with ETH. Every time, we see BTC is vulnerable, we also see that ETH is vulnerable – ETH most of the time slides down with BTC. ETH is even more vulnerable to the Macro driven swings triggered by the risk appetite of investors.

The recent crash is a sign of “risk-off” by majority of the BTC investors.  It just looks like there is no where to hide. And, the new trained sentiment is that when there is a crash those who have been waiting to buy become all alert and they are ready to buy.

The cryptocurrency market is filled with investors running behind Ethereum, Solana and all sort of other stuff, which is specifically technology, which we believe will contribute to global growth in one form or the other. Thus, making it important to achieve results, failing which investors would not choose to hold and they would want to go risk-off.

Every kind of cryptocurrency is “risk-on” and “risk-off” A price decline is caused by number of variables. There could be one major reason, but it takes some combined factors to keep it down for too long.  If there are not too many bad reasons, it is easy to see tokens bounce back from where they fell.

Bitcoin, Ethereum and Solana slid as a result of a proposed ban on cryptocurrencies in Russia and the fall in the US stock markets or whatever for other reasons.  Just to say, there is no token that can be called to be completely good or completely bad.  It is about riding the tide.

This is also true about meme coins like Doge Coin and Shiba Inu.  There is no coin that is risk free.  Even stable coins are accused of not having sufficient reserves.  If you thought it is safe to park your value in stable coins and you thought it is the best, there are problems like what if the stable coin company is not able to provide you with the required redemption?

For instance, Billionaire and Tesla CEO Elon Musk believes that cryptocurrency Dogecoin is better for transactions as compared to Bitcoin.

In a tweet on Jan. 14, Musk announced that Tesla is accepting dogecoin—”people’s crypto“—as payment for some merchandise on its website.

And, immediately everything looked bright for Doge.

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dan saada

Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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