The cryptocurrency market has been quite lively since last week. Most altcoins gained significant momentum after visiting the December 2020 levels. However, experts are not in a hurry to interpret the current movements as bullish. Tanvir Zafar, one of the FXStreet analysts, has been closely watching the NFT market during this period.
Past bear cycles of the cryptocurrency market
The cryptocurrency market has seen drops of up to 90% before. For example, in 2018, the price of Bitcoin crashed from its then peak of $19,600 to $3,400. In another example, it fell from $64,000 to $29,000 in 2021. So, the current bear market will not be the last drop. Every market moves in cycles with bullish and bearish signals over the long term. In the meantime, the important thing is to choose the right products…
It may be time to focus on NFTs, analysts say
With the market falling, investors are looking for altcoin sectors to be the next trend. Currently, one of the strongest markets to do so revolves around NFTs. NFT prices are usually expressed in crypto. However, with crypto prices falling, NFTs have become much more discounted. By January, an NFT of 5 ETH would probably have gone for around $10,000. Currently, the same NFT costs less than $5,000. Just like in cryptocurrencies, NFTs make money over trading.
cryptocoin.comAs you can follow, CryptoPunk has been one of the biggest NFT sales of recent times.
However, it is important to find NFTs that are valuable. Like cryptocurrencies, there are NFTs tied to larger projects. These coins tend to get the most value because of their benefits. The biggest NFT coins of the market are as follows.
- Apecoin (APE)
- Flow (FLOW)
- The Sandbox (SAND)
- Decentraland (MANA)
- Axie Infinity (AXS)
buy from the bottom
Buying from the bottom is one of the most important criteria for a portfolio. Doing so when the market is this low is high risk. But there are some opportunities to seize here, according to analysts. Currently, the crypto market is in a very important position. The values of cryptos have plummeted, but there are still many developments going on. Developers continue to work without being deceived by bear markets.
Only in June, Cardano, one of the oldest blockchains in the market, will try to implement a hard fork that will increase its scalability and reduce transaction costs. Also, Ethereum 2.0 is approaching, a crucial upgrade for Ethereum that is expected to make it more scalable. On the Bitcoin front, investors are eagerly awaiting confirmation of the Bitcoin exchange-traded fund (ETF).
Such developments will undoubtedly have long-lasting effects on the market in the coming years. Right now seems like a good time to build a viable crypto investment strategy based on market developments. Combined with the fact that the market always moves in cycles, we may see some gains very soon. Traditional crypto and NFTs remain the ideal investment for forward-thinking investors, and there is no time to waste with it.
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