Much has been said about the correction of the current market. The reason for the fall was attributed directly or indirectly to many factors: the most prominent being, Elon Musk’s BTC ad and news about the ban on cryptocurrency mining in China.
Overall, two scenarios took place in the midst of this massive setback:
Short-term hodlers sold at a loss.
Miners and long-term hodlers accumulated coins. Therefore, buying in the fix.
The same can be seen in this analysis based on Glassnode:
With fear prevalent in the market, many long-term cryptocurrency proponents have expressed their confidence in crypto-markets.
If the market doesn’t shake out the weak hands, it won’t have the strong foundation to grow further. With weak hands in there, at some point, it must have a retrace. Not sure which one causes which. But after a shake out, the foundation is stronger. 💪 https://t.co/6inX2HJDV1
– CZ 🔶 Binance (@cz_binance) May 20, 2021
CZ had previously stated that corrections were essential to:
“1) build support levels; 2) allowing people to make a profit and 3) most importantly, shaking weak hands, which helps to build a solid foundation. “
Another trader and analyst stated:
It’s likely we’ll need some time to recover from this. If you’re in high quality altcoins for the long term, you have nothing to fear. High quality altcoins are on sale. Lower prices are just a better opportunity to make you richer in the long term.
– Secrets (@SecretsOfCrypto) May 22, 2021
Many popular traders continued to express their confidence in large companies as well. Crypto trader and analyst, Crypto Capo expressed his optimistic narrative in relation to one of the trend alts, Cardano (ADA).
Crypto Capo’s tweet stated:
“Great potential on the ADA roadmap, I can see that happening.”
In addition, he justified by attaching the price list:
He reiterated a similar optimistic narrative in another tweet.
I cannot be more bullish pic.twitter.com/bFDflr33II
– il Capo Of $ NOIA (@CryptoCapo_) May 20, 2021
Recently, different analysts and traders like Rekt Capital and Poppe, a Dutch trader, commented on their optimistic views on the ADA. The interest in altcoin is also evident in Google Trends data.
IOHK CEO Charles Hoskinson at his AMA session was also quick to recognize an important aspect of market setbacks. He said:
“Welcome to the cryptocurrency. That’s how crypto works. It goes up and down a lot. You cannot make 900% gains without expecting any setbacks. “