Will Crypto Rebound or Should I Sell Cryptos Like BTC, ETH, SOL Right Now?

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Crypto is seeing a downturn in the wake of some major global powers looking to crack down on the asset class. After China’s ban last year, the U.S. is looking to regulate crypto assets. India is looking to follow as well, with the government voicing an interest in banning digital currencies. And this week, a massive driving force behind the downturn is the Russian central bank’s scathing report on cryptocurrencies. The report is fueling calls for the nation to ban mining and trading of digital currencies within its borders.

These countries alone account for over 3 billion of the world’s population. Of course, bans in any combination of the four nations would be devastating to global crypto adoption. The fear of these blows to adoption are certainly helping along the market crash. Now, investors are witnessing Bitcoin (CCC:BTC-USD) tumbling 20% in just seven days. Ethereum (CCC:ETH-USD), meanwhile, has lost over 30% in the same span, as has layer-1 competitor Solana (CCC:SOL-USD). Tokens are being spared no mercy, either, with Shiba Inu (CCC:SHIB-USD) tumbling 30%.

Will Crypto Rebound, or Is it Time to Sell?

With the market so drastically falling, investors are wondering whether a crypto rebound is becoming less likely. Indeed, one of the hallmarks of a crypto correction is in “buying the dip”; but if a rebound is not going to happen, investors will want to get out as fast as they can to prevent further loss.

Fear not, for only the most bearish on crypto are those expecting crypto to fall into the oblivion with this one crash. Even Peter Brandt, the well-known crypto trader who predicted 2017’s crash, is not warning of doom to the industry with this crash. Brandt says Bitcoin will bottom out at around $25,000 before regaining its footing, about $8,000 lower than current values. It’s certainly not as pretty as its $60,000 values of late autumn. However, that’s still a higher price than any other crypto in history has been able to reach.

The vast majority don’t see this as an “end of days” moment for crypto. However, there are plenty of traders who are not looking at holding their crypto for the long term. Should those traders start selling, so as not to lose more money?

As the Liquid crypto exchange covered in its blog last autumn, crashes demonstrate the importance of setting limits, both for gains but also for tolerable losses. It’s important for investors to know when to sell and walk away with profit. But, it’s almost more important for one to know how much volatility they can tolerate before getting out.

In an already volatile industry, users need to have set prices for themselves when it comes to selling off their assets. Those who can’t tolerate losses like those recently demonstrated by SOL or BTC or ETH should consider cycling those investments into other areas. However, it’s worth noting that if Brandt’s prediction holds true, we are almost at the bottom of the Bitcoin correction. If one has held this far along, they can likely see the light at the end of the tunnel.

On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.