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Can XRP, XMR, other altcoin holders swing trade their way out of a bear market?

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What is the way out of the short-lived bear market? Is it swing trading or HODLing? Though different parties have different answers, what everyone can agree on is the fact that the altcoin market capitalization heads south every time there is a drop in Bitcoin’s price.

This can partly be attributed to the correlation between the assets and partly to the fact that altcoins are alternatives to digital gold, and every so often, institutions prefer the digital gold narrative to altcoins. In fact, Willy Woo plotted the map of the entire cryptocurrency market against BTC’s value and pointed at the downward trend in the trace. According to Woo, this downward trend represents an exponential loss.

Can you swing trade your way out of the bear market?

Source: Twitter

Based on the chart, Woo inferred that it is ideal to swing trade altcoins, rather than HODL them, as the only asset worth HODLing over a prolonged period is Bitcoin.

Woo also classified altcoins as oscillators and degenerators in his previous tweets, with the said classification suggesting that retail traders may divide assets in their portfolio based on when and how to trade them for Bitcoin, while turning a profit. Though some may argue that HODLing a cap-weighted index of a basket of altcoins would give returns similar to those of Bitcoin’s, based on the momentum, Woo’s chart seemed to suggest otherwise.

It is evident from the recent sell-off triggered by the Bitcoin “Double spend” dip that several swing traders may have registered unrealized profits in altcoins like MANA, BAT, AAVE, and DOT.

However, HODLing altcoins in the long-term has turned out to be a loss-making proposition for many too. Further, tokens like XRP, ZEC, and XMR have failed to make a comeback to pre-2018 levels, despite Bitcoin’s prolonged price rally and the recent investment flow into altcoins. As the flow of investment shifts to altcoins, swings are expected to be increasingly volatile, while resulting in relatively high profits – double-digit gains spread over a market cycle when Bitcoin’s price rally goes sideways.

However, Raoul Pal is one of many who isn’t so sure. In fact, in a recent tweet, Raoul Pal asked Crypto-Twitter to shill him their favorite altcoins as he wished to add 10 new altcoins to his Bitcoin and Ethereum bets in the ongoing dip.

Bitcoin maximalists would agree with Woo, however, since there are altcoin traders booking profits through swing trading with Risk-adjusted returns that are steadily moving closer to Bitcoin. Only time will tell what turn the altseason takes, especially if Bitcoin does rally towards $41,000 again.

Source: https://ambcrypto.com/can-xrp-xmr-other-altcoin-holders-swing-trade-their-way-out-of-a-bear-market/

Amb Crypto

3 types of bitcoin investors that ‘should be concerning to central banks’

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With 106 million global crypto users as of January 2021 and a crypto population that has now surpassed 100 million, a financial expert noted that central banks must now be wary of certain crypto investors. In a new seminar held by the University of Pennsylvania’s Wharton School, part-time professor, Mohamed El-Erian, who is also Chief […] Source: https://ambcrypto.com/3-types-of-bitcoin-investors-that-should-be-concerning-to-central-banks/

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Amb Crypto

150,000 bitcoins in question: Mt. Gox creditors to vote on draft compensation plan

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Now defunct crypto exchange Mt Gox’s appointed trustee, Nobuaki Kobayashi, revealed that the Tokyo District Court has not found any grounds for disapproving a previously submitted draft rehabilitation plan. According to the latest update posted on 25 February, the court approved a repayment process schedule that Attorney Kobayashi proposed. According to the schedule, the trustee […] Source: https://ambcrypto.com/150000-bitcoins-in-question-mt-gox-creditors-to-vote-on-draft-compensation-plan/

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Why Coinbase will maintain its investment in Bitcoin?

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Crypto exchange Coinbase has held Bitcoin and other crypto assets on its balance sheet since the firm’s inception in 2012. Head of Institutional Sales, Trading, Custody, and Prime Services at Coinbase, Brett Tejpaul, revealed this in a blog today. He said that the firm intends to maintain an investment in digital assets due to the […] Source: https://ambcrypto.com/why-coinbase-will-maintain-its-investment-in-bitcoin/

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Amb Crypto

XRP Price Analysis: 25 February

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XRP formed a bullish pattern on the charts but was quite negatively impacted by Bitcoin’s tumble of the past few days. News surrounding the SEC lawsuit has not been positive lately either- Moneygram, the US-based money transfer company, recently suspended its partnership with Ripple Labs, citing the ongoing litigation with the SEC. XRP 12-hour chart […] Source: https://ambcrypto.com/xrp-price-analysis-25-february/

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