Russian President Putin on Thursday morning announced a "special military operation" in Ukraine, hammering the broader financial markets worldwide along with crypto falling almost 9% in the early Asian hours.
There is a sparking fear and uncertainty; short-term investors cashed out on equities and more heavily on crypto markets, again proving the risky nature of the latter asset class. The Fear and Greed index gauges the market sentiment at 23 or the "extreme fear" bracket, thus verifying the prevalent market conditions. With over $200mm liquidations in a matter of hours, the crypto market seems to be currently in a downswing, bleeding the investors' portfolios.
Highlighting the next move, what to do about the crypto investments; Should you go into sell-all mojo mode, pull that buy-the-dip card, or be on standby like Bernie with mittens on?
The right action is always trying to understand most of the current situation; rather than hurling into a sandstorm, it's better to let the dust settle in, gauge the damages and then take the necessary steps.
For crypto investors who are worried about the rough ride, the waters on the surface always seem too disturbed at first; the long-term understanding comes from watching the situation–the on-chain activity of long-term holders closely – which appears to be unflinching in the long term.
The same goes for first-time investors looking to buy the dip. It is said that the bottom comes in when volatility goes on hiding; therefore, standing by is the right option. Although investing in gold seems to be a good hedge, it is the most sought-after asset during times of crisis.