A few tweets from Elon and a well-telegraphed regulation tightening triggered a jaw-dropping 40% drop overnight, with utter disregard for the constructive development of the space.
Not that I am a big fan of Warren Buffet, but a 20% annual return over his career forces respect. The guy had convictions as a value investor and he stuck to it. This is in stark contrast with the flimsy investor sentiment that we’re experiencing now in crypto.
Great fundamentals exist, DeFi is here to stay, but this recent episode highlights that investors globally stopped looking at them. Relying solely on sentiment has made them flimsy, and trigger-happy when it comes to buy or sell positions.
Focus on your long game, analyze the long-term trends supporting the change of our society, and see how DeFi re-invents, one-by-one, all the bricks of finance. Still, bear in mind that the price of an asset is only worth what the next buyer will offer for it. And you’ll become richer, my son.