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🔷 How to Protect Your Portfolio in the Face of Market Turbulence “With unexpected price swings, market downturns, and bearish sentiments becoming the norm in the crypto space, it is critical to understand some tips and tricks to help protect your portfolio.”
As of November 31, the crypto market Fear & Greed Index was [Fear 29], down 2 from [Fear 31] last month.
The trust gained by the crypto industry from Wall Street investors and institutions after years of hard work, collapsed this month due to the FTX incident. The bull market boom in the crypto market has become a distant myth. BTC has fallen by approximately 65% year to date. Meanwhile, on the day when FTX was unable to reverse the situation (November 7), BTC fell by approximately 24%. Terra, 3AC, FTX, and other major players in the industry were eliminated due to unstable and unsustainable risk models, and the bleak global macro situation further led investors to stay away from risky assets.
If 2022 is a difficult year, then November should be the most painful month among the challenges. The domino effect of FTX has spread widely. In addition to FTX and 130 subsidiaries that have applied for bankruptcy protection, some other leading enterprises in the industry have also applied for bankruptcy. The latest application for bankruptcy is BlockFi. According to media reports, the number of BlockFi creditors exceeded 100,000, and the scale of assets and liabilities was between $10-10 billion. Based on the past major bankruptcy cases in the United States, FTX users may have to pass through many years to get their money back, and three to five years may be a preliminary time frame.
The blow to trust is irreversible, which is the most profound impact of the FTX incident. The domino effect will cause the price of BTC to remain low, and we may face more pain, but let's put aside the pessimism and look at the current situation objectively——1. Will large banks take the "big trouble" suffered by the crypto industry as an opportunity to enter the blockchain market? 2. Is the recent sell-off a temporary bearish sentiment brought about by the domino effect? Or has investors' deeper psychology changed? Perhaps clarifying these two issues can help us better judge the situation and carry out the next plan.
🟠 BTC was opened at $20363.8 in November, and the current quotation was $16845.7 at 12:00 on November 30, representing a decrease of 17.3%.
🔵 ETH was opened at $1569.5 in November, and the current quotation was $1265.2 at 12:00 on November 30, representing a decrease of 19.4%.
🌍 Global Affairs in December 🌍
Author: Gate.io Researcher Jill Ma
This article represents only the researcher's views and does not constitute any investment advice.
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