MARKETPEOPLE

Is it okay to buy low? Larry Cermak: I am surprised that those junk coins are still holding up, but there are some things you need to understand.

share
Is it okay to buy low? Larry Cermak: I am surprised that those junk coins are still holding up, but there are some things you need to understand.

Bitcoin fell 13% on January 21, the largest single-day drop since the Black Swan event on March 12, 2020. Hodlers (long-term holders) are still holding on, while speculators are waiting to buy the dip, and the hope for a bull market seems to remain...

Trash Coins Making a Comeback, but You Need to Know

Following a significant drop in Bitcoin, some altcoins, or smaller market cap "shitcoins," are showing signs of recovery, with some even surpassing previous highs.

The Block's Research Director, Larry Cermak, commented on this:

"I'm surprised that these 'trash coins' are holding up during the big drop. But you have to remember one thing, this bull market is starting and being sustained because of institutions buying Bitcoin. And you have to believe me: 'They absolutely aren't touching anything else besides Bitcoin, including Ethereum.'"

He mentioned that there may be other buying pressures as people take profits from Bitcoin and put them into other coins. However, many retail investors have been entering the market over the past two weeks. "I think if the weak Bitcoin continues for a few more weeks, other 'trash coins' won't be able to hold up much longer."

He continued:

"I know many people will be very angry to hear me say this, but it's your right to disagree. Anyway, I don't think the rebound is ending, just that there's still more money waiting to flow into Bitcoin. Ethereum can continue to improve, but only under good conditions."

Finally, he mentioned that the ETHBTC trading performance is good, but it doesn't necessarily mean there is real external capital flowing in. This is something I hope people can understand.