FUD and Another Bloodbath (2018 Chinese New Year Edition)

Yesterday I noticed that I could get a 1% profit for the Bitcoin I bought at the price of $14.200. However, given my experiences with regrets of short-term trading and not being patient enough, I've decided not to sell. But when I wokr up this morning, I realized that I was 30% in the red zone and regretted my decision: I could have taken my money out to buy some more coins today!

Upon reading the news, I discovered that there are multiple reasons for the new bloodbath and by now I'm used to all the FUD and fake news - the first two weeks of 2017 have been pretty rough for cryptos and we've seen this highly dynamic and volatile market support the rise and fall of many coins (TRX and Dogecoin are prime examples). But this time, in spite of the regular distorted facts and rumors about China or Korea considering new regulations or bans on certain types of cryptos, we're seeing a pattern that gets reflected every year before the Chinese New Year.

As you can see in the picture below (which became popular on Reddit), the early days of January are traditionally bad for business due to the proximity of the Chinese New Year. Much like the prices have dropped a week before Christmas and the insane bull run had finally settled, we are facing a similar pattern right now. The only exception is that the amount of bad news that precede this day is on par with the phenomenal development of the crypto world. Governments want their slice of the pie and will do their best to remove anonymity for the purpose of imposing taxation.

Currently, my portfolio consists of 33% Bitcoin and 66% Litecoin. I don't worry much about the price because I didn't buy close to the all-time highs and feel confident about the future of these two coins: they are some of the best cryptos out there and the entire industry has to fall in order to cause any damage to their status. They are libertarian coins with highly dedicated development teams, they have plenty of big announcements for 2018 (Litecoin will introduce Litepay in February, and this event will turn it into the most convenient crypto token for low fee exchanges, and Bitcoin is expected to receive the Lighting Network update), and the rising interest in the field will once again bring them to their glory days.

Part of me feels sorry for not investing earlier: I first found out about Bitcoin in 2014 and even did a university class presentation about its technology and potential, but the Silk Road incident and the numerous mainstream articles against it have effectively kept me away. On the other hand, the market these days is more established and more secure than ever, with many stakeholders whose interests are directed on the long term. So even though I should be expecting smaller returns for my investments, at least I can sleep at night even when my portfolio is 30% in the loss, knowing that better days are coming.

If you get the chance and have the money, you should totally take advantage of the situation and buy the dip - I know I would. As it already appears, the European and American traders and investors are on the buying side in order to hold on the mid to long term for greater returns. When our Chinese friends return from their holidays and celebration, they will most definitely pump the price. So try not to be a weak hand and HODL!