Cryptocurrency prices reached new lows again in late June as bitcoin (BTC) dipped well below the $20,000 psychological support level. Investors who have plowed capital into the sector for the past two years witnessed the sector’s largest drop-off in value in recent memory.

Credit: Frank Busch

Meanwhile, activity among day-traders and investors in alternative asset classes has begun to rev up as traditional markets and crypto, continue to suffer. Questions on the minds of individuals and investors during last week’s pounding of BTC and other altcoins were focused on how much further the downtrend would continue.

There’s already been a shift among many retail-level traders to hard assets like commodities, precious metals, and others. Bargain hunters, who come out during every bear session, are apparently still sitting on the sidelines trying to predict how low the equity indices can go. Cryptocurrency backers have seen price declines on the order of 80% in previous bearish drop-offs. So far, however, that has not been the case with bitcoin, the leader crypto in terms of capitalization. It has lost nearly 63 percent of its full value since the last high watermark in Nov. 2021.

Credit: Austin Distel

Day trading, even during a major economic slowdown in developed nations, has continued to gain adherents who seek personal financial freedom and the chance to earn a living without being tied to a corporate culture that took a huge hit during the recent pandemic. Individual investors who set up trade stations in their homes to buy and sell multiple asset classes use self-explanatory day trading guides to get started quickly and easily. One significant advantage day traders have is the ability to earn profits in up or down markets. Using techniques that allow for shorting stocks, crypto, forex, and other instruments give them the chance to play the volatility in either direction.

In a logical twist with some BTC enthusiasts maintaining optimism, the leading altcoin is still appearing to hold to its year-end values from 2020, when the COVID pandemic was in full swing and wreaking havoc in global markets. Since then, for 24 months, BTC has risen and fallen in alternate cycles that continually posted higher highs and higher lows. If that exuberance was the result of the waning pandemic, then the current lows could mean the full effect of COVID on major sectors is finally over, even as another bearish cycle sets in.

Contrary to historical trends, gold has not shot up in price during the most recent equity and cryptocurrency price slides. Long-term charts reveal that the yellow metal, a favorite among those who prefer it as an inflation hedge, has held its own for more than one full year. If there are any gold bargains left, they probably exist at the current price point, which is slightly above $1,800. With the economy on the edge of a recession, inflation at record levels, and interest rates rising quickly, there’s a chance that the gold bugs are waiting until the end of summer travel season before they decide whether to jump from traditional assets and start bidding up gold’s price above the $1,825 mark.

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