Is the Crypto Market Getting Ready for a Big Dip?
- Traders and investors are once again showing uncertainty.
- Lark Davis highlights that fear is sweeping across the crypto space.
As the crypto market is showing bearish signs, traders and investors are once again showing uncertainty. Every time that the market shows the slightest dip, the crypto community panics in fear of their finances falling.
From this, some experienced traders are cautious of the current trials the crypto market is facing. Still, they are confident of the capabilities of crypto.
This is the case of Lark Davis, a crypto analyst, and long-time investor who has tweeted a chart from crypto Fear and Greed. To clarify, the Fear and Greed Index is a chart that measures investors’ sentiments towards the market. Moreover, the index unveils whether the market is bullish or bearish. Plus, it is based on 2 opposing emotions — fear and greed.
Fear is sweeping across crypto land, but here’s the truth. Scared money, don’t make money. #crypto pic.twitter.com/91wCpd18l1
— Lark Davis (@TheCryptoLark) September 29, 2021
Looking at the chart, the crypto market behavior is very emotional as people started selling their coins in an irrational reaction to the red numbers. These red numbers are as a result of China’s latest move to crackdown on the crypto industry once again.
Last week, China declared crypto trading illegal — that it is “not protected by law.” Following this news, some crypto platforms have gradually pulled out and relocated their services to other countries.
But of course, the perspective is different when it comes to expert traders, long-time hodlers, and crypto believers. Interestingly, Lark Davis’ post led to a thread.
In particular, Lark Davis highlights fear sweeping across crypto space. “But here’s the truth. Scared money, don’t make money,” he notes. In this instance, he talks about selling based on the fear that is affecting the market.
Additionally, many replied to the tweet, agreeing with the crypto analyst. In light of this, a Twitter account noted, “true.. scared money, don’t make money, but smart money makes big big money, we are clearly in downtrend.”
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