Fortunes aren’t built in bull markets, they are built in bear markets. This is because inexperienced investors don’t know what to do in a bear market, so make poor decisions. Meanwhile, smart investors identify opportunities and take them.
If you invested $1,000 in Bitcoin during the crypto bear market of 2018, you would have more than 5Xed your investment now. However, if you were invested in ETN, you would have actually lost money. This is because altcoins lose value faster and are more susceptible to overvaluation. Here, we’ll look at which you should invest in during the current bear market, and if you should swap ETN to BTC.
Why the Crypto Market Crashed Again in 2022?
There are multiple factors that combined to crash the crypto market in 2022. Here are some of the main ones agreed upon by many investors:
- Heightened inflation has led to sell-offs
- US federal reserve tightening led to a sell-off in technology assets, including crypto
- Investor panic caused a self-reinforcing selling cycle
- Margin calls on many leveraged investors led to the downward pressures
- Crypto project failures, such as Celsius
- Market sentiment has dropped significantly
Many of these factors look set to continue in 2022, with more inflation, fed tightening, and project failures likely to come.
What Is Happening with BTC?
BTC has taken a big hit this year, but nowhere near as much as other cryptocurrencies. It has dropped over 60% — from over $67,000 to around $20,000. Daily trading volume has been cut from around $50-70 billion per day to $20-40 billion per day. However, this is a much better performance than other cryptocurrencies, as Bitcoin is seen as a much more stable network. It has a very low risk of failing as its technology is proven and not changing much. It also has a lower regulatory risk than other projects.
Long-Term BTC Price Prediction
Here are some 3-year and 8-year price forecasts for BTC from leading experts:
|Forecast 2025||Forecast 2030|
|Digital Coin Price||$41,791||$98,277|
The range of forecasts is wide, with PricePrediction’s 2030 forecast being 9x Cryptopolitan’s. This reflects the high level of uncertainty in the market right now. Will Bitcoin become a global currency? If yes, $800k is achievable. If not, then $90k seems about right. Either way, BTC is set for reasonably strong growth.
What Is Happening with ETN?
ETN token is a UK-based crypto project that aims to give purchasing and financial power to the billion people who don’t have access to banking. The goal is fast, cheap, open cross-border payments on mobile devices.
The project has had some success so far. It’s ranked #350 on the crypto charts, has over 100,000 transactions per month, 190+ countries, and 318,000 in-app transfers. However, this level of activity pales in comparison to BTC.
The price of ETN is currently around $0.003. It peaked at $0.20 in 2018 and has since come down by over 98%. It is also down over 90% since 2021. Volume is down drastically from around $50 million per day to around $100,000 per day.
Long-Term ETN Price Prediction
Here are three long-term expert forecasts for ETN.
|Forecast 2025||Forecast 2030|
|Digital Coin Price||$0.0063||$0.014|
These price predictions show skyrocketing growth in the long term. However, there is a wide divergence on how much the price will grow, and it is uncertain if the probability of project failure is taken into account in these forecasts.
Will the ETN/BTC Conversion Bring You Any Profit in the Long Term?
We’ve seen that a bet on BTC in the bear market of 2018 would have paid off handsomely by now. But, a bet on the ETN token would have resulted in a loss. Experts predict that in this bear market, ETN will outpace BTC in the long term. But, it also carries the extreme risk of dropping by up to 98% in value. So, the safest bet still seems to be BTC. If you want to be bold and buy the dip, you can go for anonymous exchange crypto with Godex, a great exchange with other 300 cryptocurrencies available, including ETN and BTC.