The former Ark Invest crypto lead, Chris Burniske, on his official Twitter account, explained how to act during a panicking market, when most investors are hysterical and make reckless decisions that contribute to the market's uncontrollable volatility and general performance.
Calmness and rationality
The first and most important advice shared by Burniske is to stay as calm and rational as possible. Because of the oversaturation of the industry with rumors and fake news, investors should be as cautious as possible to avoid additional losses caused by irrational trades and investments. At the same time, the former fund manager understands why investors are fearful and says that it is okay to feel scared.
2/ Remain calm, remain rational. Things are rarely as good or bad as they seem. Remember that rumors get out of control in a time like this. I see errors in logic everywhere.— Chris Burniske (@cburniske) November 18, 2022
Yes, things are peak fear for crypto right now, it’s okay to feel scared, but we will get through this.
Thanks to his own insider sources, Burniske believes that industry will become more stable in the future as more clarity will be provided to market participants next week. Meanwhile, investors should provide more attention to the biggest digital assets on the market that usually represent how well the industry is held together against panic.
While staying mentally strong, investors should also be ready for a potential move downward, which is still possible despite the relative calmness that came back to the market. It is important to note that FTX still has an $8 billion debt to their own investors who simply deposited funds to the exchange. Reportedly, the exchange was able to collect around $800 million.
Considering the lack of capital, FTX will have to liquidate any liquid and illiquid assets they have to return users' deposits. However, it will most likely create serious pressure on the altcoin market, considering its current illiquid state.