Staying patient during bitcoin market swings is crucial, experts say

Bitcoin’s recent market volatility has led many individual investors to question market risk and the broader impact it can have on their portfolios.

In a recent discussion, Roundtable host Rob Nelson, David Duong from Coinbase, Noah Newton from Moby Media, and Kelly Kellam from BitLab Academy shared their insights on the current state of the crypto market. Their discussions highlighted the importance of understanding market dynamics, being patient, and maintaining a long-term perspective for those navigating the unpredictable world of crypto investments.

Nelson began the conversation by touching on the recent market activity surrounding bitcoin. He noted that the past few weeks have been turbulent, but that those familiar with the space may view it differently than new investors who are experiencing their first taste of volatility. Rob then turned to Coinbase’s David Duong to shed light on what’s happening at the exchange level.

Duong explained that the initial chaos in August was driven by macroeconomic factors rather than anything crypto-related. Events like the Bank of Japan raising interest rates and fears of a global recession led to strong reactions across markets, including cryptocurrencies. However, Duong noted that the market is starting to stabilize as excessive leverage and positioning unwinds, and that a more moderate climate is likely to follow.

Noah Newton has offered advice to those new to the crypto space, emphasizing a long-term perspective. He shared that among his friends and family, he only recommends bitcoin and ethereum because of his strong belief in their value. Newton said that unless someone has a five- to ten-year time horizon, they should reconsider investing in these assets. He also emphasized the importance of not getting too caught up in daily price movements and instead focusing on the bigger picture.

Kelly Kellam echoed Newton’s sentiment, emphasizing the importance of education and patience. He noted that many investors lock themselves into short-term thinking, which only increases stress and emotional reactions to market movements. Kellam suggested that investors look back and look at market cycles over the past 14 years to gain perspective. He suggested focusing on longer-term trends, such as the 200 moving averages on a weekly basis, rather than overanalyzing every price move.