Investment idea: What to buy in a volatile market

Investment idea: What to buy in a volatile market

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Author: Robert Strickland
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Investment idea: What to buy in a volatile market

Given the current market situation, next week I would focus on the main cryptocurrency, bitcoin (BTC). Bitcoin managed to go back to growth after the release of data about the slowdown in consumer prices in the U.S., and positive signals about the recovery of the U.S. manufacturing sector added to investors' optimism.

The main negative reports - the termination of Binance USD (BUSD) stablecoin, the classification of tokens as unregistered securities by US regulators and so on - did not directly affect bitcoin. That's what makes the asset attractive right now. On the one hand, it promises notable volatility in the coming months, on which traders can play and profit. On the other hand, it is less exposed to regulatory risks, which have been clearly visible in the last few months in the U.S. market, where regulators have clearly set out to bring order to numerous cryptocurrency companies, especially crypto creditors and stablecoin issuers.

Regulators vs. cryptocurrencies. Who will benefit from the new rules?

The ban of the stacking service on cryptocurrency exchange Kraken in the U.S. prevents the price of Ethereum (ETH) from being predicted anytime soon due to regulatory uncertainty. Other altcoins in an unstable crypto market, which can go into a downward trend at any moment, seem to me to be excessively risky assets. Thus, unless there is an opportunity to take a pause and freeze with assets already in hand, I would increase my position in bitcoin.

Next week, if there are no strong negative shocks, bitcoin may accumulate the bull forces and try to break through the resistance level of $27.5K. If it manages to do that and sticks around this level, the next resistance level will be the cherished $30K. I suppose that bitcoin can do it well at both levels now.

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