Seeing my crypto portfolio decimated after the tariff announcements made me realize that the crypto market is still reeling from the tariffs meltdown and the consequences are far-reaching.
Two weeks have passed since the "reciprocal" tariffs were unleashed and the dust seems to be settling but the crypto market is still unstable after the tariffs meltdown. Honestly my portfolio has been slashed by at least 40% since January which has been incredibly stressful! The unpredictability is still high so I am being prudent with any investment for now.
Over the last year crypto has seen a heavy decline in price and it has been hard to watch. Take for instance ETH: in 2024 it costed around $3000 per unit. After the election it rose up to $4000 only to lose value steadily. I kept thinking it would bounce back. Unfortunately it doesn't seem so.
I'm no economist to decide whether the economic decisions that were made are good or bad but certainly for the world of investment they brought disaster. The constant threat to strategic partners uncertainty and job cuts brought prices crashing down. My strategy was to invest progressively as prices dropped so I kept some funds available. Eventually I ran out of cash exactly when prices were at the lowers. I feel on the edge right now 😂.
The tariffs announced on April 7th brought a huge wave of volatility to the market and it felt like the final nail in the coffin. ETH plummeted more than 20% from around $1900 to $1400 in just one day! Such a severe drop caught me off guard meaning that I had no budget left for investment at that particular time! I felt like I was watching a bad movie.
Since the market is beheaded hopefully it's headed somewhere. I am certainly hoping for better weather and I'm now trying to make a bit more calculated choices when applying this buy-low strategy. Perhaps I will invest a lower sum over the course of time in order to avoid this out of budget situation. The market already seems to have recovered a bit but recovery is always slow! In the investment world you can lose a fortune in a flash! I guess it's the right combination of prudence a sense of reality and being prepared mentally for significant downturns which get you achieve financial results in the long run. I am hoping I have learned some valuable lessons during this turbulent time.
How are things on your side? Do you think the market will improve soon?