The crypto market has dumped in the last couple of hours, with Bitcoin (BTC) dipping to as low as $5057 on some exchanges. This followed a Wall Street Journal article that Bitfinex used tether reserves to mask an $850 million hole. The news immediately caused a shockwave that sent Bitcoin (BTC) plummeting by more than 10%. Altcoins have taken an even bigger hit since they were already showing weakness way before this news hit the market.
However, what’s most interesting is that, hours after these news hit the market, Bitcoin (BTC) has rebound and offered some level of support for the altcoins. It’s a clear signal that the market now has the capability to withstand negative news. For investors, this can only mean one thing, is it time to load up on strong altcoins that have experienced significant correction in the last 12-hours. One altcoin that presents an amazing opportunity is Cardano (ADA).
Cardano is now trading at $0.069, way below its recent highs, when it almost tested $0.10. One thing that makes Cardano a worthy buy is the fact that, it is the middle of transition, as it seeks to move towards full decentralization. This process is fully on track and is in no way affected by the negative price movements that have hit the market recently. If anything, this is just a bump.
The IOHK was consistently working on Cardano (ADA) in 2018, when the market was going through the worst of the bear market. In essence, now that they are in the final stages of the transition process, the team is guaranteed to deliver. Considering the eagerness with which the Shelley release is anticipated in the market, there is no doubt that once it is officially announced as complete, Cardano will experience a significant gain in price, especially due to the staking aspect of it.
In essence, a savvy investor would be looking to accumulate on Cardano when it is still cheap, pushed down by external forces that have nothing to do with its fundamentals. That’s because, in the long run, when it is fully decentralized and has smart contracts running on it, its price will inevitably rise on the strength of its fundamental value.
Besides, like all altcoins, it is supported by Bitcoin (BTC), which from all indications is slowly turning bullish. A good indicator of its bullish sentiment is the fact that the Bitfinex news haven’t adversely impacted its value. In fact, after the initial dip, Bitcoin is back above $5300 and if this momentum holds, it could be back above $5500 in coming hours, effectively negating the effects of those news.
As it rises, so will altcoins. In fact, if it enters into a full-blown bull market, altcoins, especially those with strong news surrounding them, could gain by a higher margin. Cardano being one of them comes off as a front runner. It may be trading sideways, but 2019 could still be the year when Cardano explodes and tests new highs.