“While it is widely accepted that the current volatility in the crypto market was triggered by the bitcoin cash fork, blame cannot be fully attributed to this one event. If you understand crypto/digital assets, then you’ll know that the fundamentals haven’t really changed. The problem is the volatility has been exacerbated by investors’ actions.
“What we are seeing is behavioral finance 101 with people acting irrationally. Investors have panicked and sold on fear and others have followed suit. It is not a phenomenon exclusive to crypto, it has been seen across the financial industry many times before and will continue unless there are mechanisms in place that protect investors from themselves. Hence the need for investment solutions that address investors’ biggest concern – the risk of losing money. Those that focus on reducing losses should ultimately decrease irrational behavior thus keeping clients invested.
“What crypto and indeed any investor needs; is more education on how irrational behavior can have a negative impact on their investment outcomes.
“The positive news around this fall is that if you understand the fundamentals of the crypto market, then what we are seeing right now is an incredible buying opportunity.”