How some traders were saved from the absolute bloodbath in the markets. (And no, it wasn’t by staying in fiat or stable coins).
With the crypto markets dumping and BTC hitting the 30k levels once again, blood was flowing down crypto street as investors panicked. Down almost 60% from its all-time high of $69’000 USD, Bitcoin has led the crash in the rest of the crypto market.
As the panic set in hordes of traders ended up selling into stable coins as their safe haven while they waited for the crash to blow over. Unfortunately for many, this wasn’t entirely the safest best as the third-largest stable coin UST, by Terra Luna ended up de-pegging from the American Dollar.
For those who had lumped their investments into UST to get away from the carnage, this would have been destructive to their portfolio as they lost up to 40% of their investments due to the de-peg dropping UST from $1 to as low as 61 cents. As of me writing this, UST still hasn’t fully recovered and is sitting at 89 cents.
During the drop, however, there was a group that managed to keep the bear at a distance and even churned out a profit despite the blood flood. These were investors who had automated their portfolios away for crypto market adapted bots to manage.
A few had gone to Twitter and other socials to go through their results on their automated portfolio during the crash.
One user made a comparison of how profitable his trading bot was vs the ole’ buy and hold strategy and posted it on the Telegram community.
Overrall this could mean that automating a portfolio away into an optimized and automated strategy might be the alternative real “safe-haven” in crypto where investors can maintain exposure to the markets and limit their losses in accordance with strategic risk management.