Back in 1929, Wall Street suffered its worst crash on record, kicking off what was ultimately remembered as The Great Depression. Around that time, the world was recovering from a pandemic, and there was a looming threat of total war. Sound familiar?
As Mark Twain once said,
"history doesn't repeat, but it does rhyme." Markets are known to be cyclical, and so is history. Every roughly 90 years or so, called a saeculum, the events of history repeat with chilling accuracy, yet under unique circumstances. The masses know another total collapse is coming, and it could be here at this very moment.
It is for this very reason there is so much panic and fear in markets currently. The United States Federal Reserve is making matters worse by choosing when the economy is on thin ice, supply chains are broken, and inflation is at record highs to start increasing interest rates. Markets are in turmoil, yet capital can be protected, and profits are still possible when using PrimeXBT.
Bitcoin, The Stock Market, And More In Complete Panic
Since late 2021, the stock market suffered its worst drop since the Black Thursday COVID correction that wiped out markets and caused panic across the globe. With a more than 18% drop, investors are not just worried about a possible bear market but the worst bear market in their entire generation.
The idea of a significant collapse on the way has brought fear to markets for more than two years. Stimulus money and the Fed's money printer kept markets afloat, but with them now about to pull the plug, investors are fearful that it all starts to go down the drain.
Panic in the stock market also took a chunk out of cryptocurrencies. Bitcoin is now trading below $30,000, and there is complete and utter carnage in altcoins as the entire market appears to be derisking at a record pace. PrimeXBT expert trader Dirk Hartig calls this a "make it or break it" moment for the crypto market.
Bitcoin Reaches "Make It Or Break It" Moment, Says Expert Trader
"From a purely technical point of view, it was surprising to see Bitcoin fall so fast from $40,000 to $30,000 USD as we saw a lot of long-term holders in the past using this zone to build up positions further. It is important now that Bitcoin defends the support at $29,500 USD in order to stabilize again," explained Dirk Hartig, PrimeXBT's resident trading expert who leads the PrimeXBT Trading Academy.
"Should that support also fail, we probably would see more volatility in the markets with prices declining all the way down to $20,000 - $25,000 USD," Hartig continued. In his report, Hartig revealed that this was closer to Bitcoin's fair market value.
Hartig runs the PrimeXBT Trading Academy education website, where he walks traders through markets on a regular basis. There, he shares market updates, tutorials, trading tips, and much more. New traders can leverage Hartig's expertise to learn how to trade, while pros can brush up on their skills by staying on top of evolving trends in technical analysis.
The Unstable Situation In Stablecoins Takes Down Crypto
"Once again, it seems as if the market is currently in a 'make it or break it' situation," revealed Hartig. "The situation surrounding Terra LUNA and Terra UST is, of course, not helping the negative sentiment."
A strategic actor is speculated to have sold UST in an attempt to de-peg the stablecoin from its value tied to the dollar. BTC reserves had to be sold in order to restore the peg, which further caused a cascade through support in Bitcoin and other cryptocurrencies.
This cascade effect damaged the bullish market structure in crypto and put Bitcoin on the ropes. With the stock market also suffering at the same time, things look bleak for global markets.
How And Where To Protect Capital And Profit From Panic
But downtrends don't always have to be such a negative situation for traders. With long and short positions provided by PrimeXBT, traders can profit when the market crashes just as easily as they can when markets are rising. In situations like we just saw, traders that might have been long would have kept losses to a minimum using stop-loss protection. Shorts would have been in serious profit.
When the trend turns around, these same tools combined with leverage can mean once-in-a-lifetime profits. Even if any bounces end up being bear market rallies, using these professional trading tools, you get the complete flexibility to get out any time and switch to a short and ride the rally back down to new lows. You can even build hedge positions by having both a long and short open simultaneously for those moments when you are unsure of what way the market will turn next.
PrimeXBT is also jam-packed with other alternatives for traders. The Covesting copy trading module and Covesting yield accounts each offer unique passive investing opportunities. The award-winning margin trading platform provides access to stock indices, crypto, commodities, and forex under just one roof. The question is no longer how to make profits and protect capital during such panics; the question is where - and the answer is PrimeXBT.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.