Some prominent tokens like Bitcoin, Ethereum, and Chainlink are being spoken highly of on social media platforms despite the crypto market crashing on the whole. The market sentiment has once again crept into the fear zone, but Warren Edward Buffett, a successful American investor, says this is the perfect time to invest in the market.
Bitcoin, Ethereum, Chainlink, and Beam are some of the cryptocurrencies that are spoken about on social media platforms. According to Santiment, a social media analytical platform, these few coins are being heavily hyped about price appreciation. Despite all the hype on social media, the price of Bitcoin and some other cryptocurrencies is crashing.Ā
Bitcoin crashed to $89K from $94K, while Ethereum crashed from $3.3K to $2.9K. The other coins also fell as the broader market sentiment was quite bearish. The Fear and Greed Index, which gauges the overall sentiment of the traders, has once again fallen into the fear territory. This shows that investors are backing a risk-averse strategy and trying to avoid any major losses.Ā
When traders are shying away from entering the market, a popular American investor, Warren Buffett, stated, āBe greedy when others are fearful.ā
But why would such a popular person give an illogical statement? Well, the chart below has the answers. When the market is in a state of fear, and retail traders are selling their holdings, Bitcoin whales and sharks are accumulating their positions. When small retail money dumped 138 BTC in the past 9 days, smart money acquired 36K more BTC within the same time period.
At times of turbulence, retailers sell the tokens and create a conducive environment by lowering the price for the whales and sharks. These smart money investors pounce on the discounted rate and bag as much as possible, and get ready for the next rally. Thatās the reason why seasoned investors like Buffett give some weird, although smart, suggestions.Ā
āWeāre seeing large holders accumulate Bitcoin while smaller investors are selling, which usually supports the long-term case. But this isnāt a signal to chase price in the short term. ā
Lavneet Bansal
Warning the investors, Bansal further stated that macro conditions are still tight, and until those conditions change, Bitcoin is more likely to move in ranges than break out decisively.
