The cryptocurrency market is now in a state of uncertainty, and the chances of a further decline in the value of Bitcoin, followed by other major crypto assets, are high.

BTC/USD
26 076 +20 (0,08%)
Aug 26 11:08:57

Many analysts expect bearish dominance in the coming weeks, which may increase amid signals from the US Federal Reserve. Based on this, there are several strategies for investor behavior - both for beginners and for more experienced ones.

Beginners are advised to enter any assets with extreme caution, giving preference to Bitcoin (BTC) and Ethereum (ETH), focus on the long term and diffuse risks through even purchases of coins with a certain frequency. It may be worth taking a break and seeing where the market is heading to try to get into Bitcoin after it drops in price.

More experienced investors may want to consider shorting Bitcoin in the $23,500 - $25,500 range. Leverage should be used with extreme caution as the crypto market likes to go against expectations and there is a risk of being short squeezed.

In terms of long-term prospects, Bitcoin remains the preferred dominant asset in investment portfolios and should, in the current circumstances, make up at least 50% of the investment portfolio, with a possible increase to 65-70%.

The forecast for ETH also looks moderately optimistic, mainly due to the arrival of the payment company PayPal into the Ethereum ecosystem, which launched its own stablecoin of the ERC-20 standard.

All payments are good. Why is PayPal entering the cryptocurrency market?

Among altcoins, it is worth considering the possibility of including Cosmos (ATOM) and Optimism (OP) in investment portfolios. The Cosmos ecosystem is quickly gaining momentum and is populated by projects; their number already exceeds 240. But you should not expect a quick return on investment - trading volumes are still quite modest. It is expected that the ATOM rate will drop to $5 in the event of a general correction in the crypto market. This would be the optimal entry point into an asset with growth prospects over 12-18 months with targets of $9 - $10.

Optimism cannot yet boast the same demand, but the ecosystem is actively developing, and judging by the activity of the developers and their marketing wing, we can expect more powerful growth in the long term (up to x3-x4 in the coming year). However, in the event of a prolonged period of decline, the ecosystem may not cope and not live up to expectations, so entering the asset costs in the range of $0.8 - $1.4.#BTC #ETH