The crypto market may be down but there is nothing to panic. It's not FUD solely directed against the crypto market. Even if we assume that it's FUD, it's one that has sufficient basis. In fact, traditional markets are also down since yesterday.
Let me explain why you should not panic and why this dip happened.
The roll out of vaccines since the beginning of this year gave hope to countries and companies around the world that everything is on its way back to the normal. Governments around the world urged their citizens to get vaccinated and true enough some countries was able to do it to more than 80 percent of their population which is higher than the percentage required to attain herd immunity.
Everything is turning fine until a month or two ago when the delta variant of COVID-19 was detected. The resurgence of fears of possible new lockdown restrictions are causing markets and investors fears that the pandemic will again sap the economic rebound that have been experienced by countries for the last few months.
In addition to this is the increasing geopolitical tension primarily against China's concealment of the origin of COVID-19 which could have had prevented the global pandemic had it been more transparent. Further, while countries are recovering from the effects of the pandemic, the Chinese government is said to be the mastermind behind various malicious ransomware, data theft and cyber-espionage attacks against public and private entities.
Will we see another crash similar to March 2020?
If the vaccines will turn out to be ineffective against the delta variant and unable to fully protect those who are vaccinated, then we may see another lockdown restrictions which are sure to cripple economies or at least cause a slowdown on their recovery. Major gains in global markets will be removed and everything has to start fresh again.
Are you prepared for another crash that may possibly happen again? How do you prepare for it?