- Binance CEO has advised the crypto community to learn and build by exploring new protocols and connecting with communities when the market experiences a significant downturn.
- He also pointed out that market pullbacks are temporal since the crypto and the traditional markets are cyclical in nature.
In a recent update, we discussed the significant pullback of the broad market triggered by the delay in the US Tariff policy. According to that report, market participants reacted with $552 million in crypto liquidations. This shakeout dragged Bitcoin down to $91k and Ethereum to below $2.4k.
As we mentioned in a recent news piece, key market metrics suddenly flipped to bearish, forcing the altcoin index to recede to 36/100. However, Binance CEO Richard Teng believes that these are no cause for alarm. Educating the market participants on the intricacies of the crypto market and how to navigate amid such periods of downturns, Teng pointed out three key lessons to keep in mind.
This Too Shall Pass
In his post, Teng advised crypto investors to understand that almost every broad market correction is temporal. According to him, the crypto market is cyclical in nature, just like the traditional market. This implies that assets usually rotate within the peak and bottom of a channel. Even so, the market tends to “win” in the long run, per his observation.
Build and Learn
Speaking to his followers, the Binance CEO disclosed the need to build and learn when some of these big corrections occur. Meanwhile, he advised investors to pay attention to product developments of assets.
Additionally, Teng suggested that investors improve their technical skills, study projects, explore new protocols, and engage with the community. According to him, “bloody moments” in the market are the perfect time to “strengthen the foundation and prepare for opportunities.”
Understand the Crypto Market and Volatility
On his final note, Teng informed investors that volatility becomes “less of a concern” when the market matures. Shedding more light on this, he explained that market sizes usually determine the level of volatility. Assets with smaller market caps tend to be highly volatile compared to those with big market caps. Additionally, utility plays a crucial role as assets with better utility value create no concerns about volatility.
Several crypto analysts have earlier shared similar sentiments with trader Doctor Profit, suggesting that a slight pullback is a positive move. According to him, such situations are usually “cooling off periods” needed for consolidation.
Commenting on the market behavior, co-founder of Syncracy Capital, Daniel Cheung, also explained that the market could embark on a longer-than-expected “buy the dip” period. However, he affirmed his belief in a positive broad market trajectory. Fascinatingly, this statement was made in November 2024, and the market has accurately followed his estimation.
In prior cycles, the mentality was to hodl and buy the dip. Now, with so many trying to time the market, it seems likely that crypto’s uptrend will outlast expectations.
With the current market situation, other analysts also observe that the strategic accumulation mode has been triggered as most of the dips recorded in the previous trading session were quickly “dealt with.” As highlighted in our previous article, analyst Alan Santana believes that these are rare opportunities to take advantage of.
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