The cryptocurrency market has witnessed a massive liquidation, losing $19.38 billion in a span of 24 hours due to macroeconomic uncertainties.
Despite the significant drop, Raoul Pal, the founder of Real Vision, is urging investors to take advantage of the situation and increase their holdings.
The crypto market underwent a substantial liquidation event last week, triggered by uncertainties surrounding trade tariffs. Data from CoinGlass indicated a loss of $19.38 billion within a day as asset prices plummeted to unforeseen lows.
Pal attributes the bulk of the market reaction to short-term traders, particularly those who traded using leveraged positions.
This led to significant losses as asset prices experienced a sharp decline. The crypto market saw a 9.18% drop within this period, a stark contrast to the bullish market trend observed before the trade tariff announcement.
Also Read: Macro Expert Raoul Pal: Bitcoin Poised For Massive Gains
Despite the market’s volatility, Pal insists that for long-term investors trading with their own capital, these fluctuations are inconsequential. He holds the view that digital assets like Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and XRP will continue to hold their relevance as the world shifts more towards digitalization.
Pal is encouraging investors to adopt a long-term perspective and disregard the current liquidation noise. He suggests market participants to buy the dip and accumulate more during this price drop, underlining that these fluctuations will be insignificant in the next five years.
The recent liquidation event in the crypto market underscores the inherent volatility of digital assets. However, as Pal suggests, such market fluctuations can present buying opportunities for long-term investors.
His advice to buy the dip is based on the belief that digital currencies will continue to hold their relevance in an increasingly digital world. As such, investors who can weather short-term volatility may stand to benefit in the long run.
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