This 1 chart is forcing investors to dump their crypto..

Key Points
The sudden drop in the crypto market on October 10th shook investor sentiment.

There has been no significant recovery yet, and the situation is now becoming even more bleak.

The stock market has performed well during this period.

Even for the biggest and best crypto assets like Bitcoin (crypto: BTC), Ethereum (crypto: ETH), Solana (crypto: SOL), and XRP (crypto: XRP), the sudden drop on October 10th significantly damaged investor sentiment. And, with the crypto sector's weakness continuing rather than abating in the weeks following the drop, fears are now growing, and many investors are using this bad month as a referendum on the entire asset class. Discussions about selling crypto and investing the proceeds in equity index funds are rife and growing by the day.

So, without further ado, let's take a look at the chart that's forcing crypto investors to sell their holdings, and then we can assess whether this is the right path for you.

This is the worst approach for making multi-year decisions.

Compared to the stock market's performance over this period, the 30-day performance of major crypto companies is as follows:

As you can see, the stock market has gained slightly, while major cryptocurrencies have virtually collapsed (and have gotten worse since I created this chart). Significantly, it doesn't matter whether we're talking about stores of value like Bitcoin, smart contract platforms like Ethereum or Solana, utility coins like Chainlink, institutional finance-focused coins like XRP, or meme coins like Dogecoin—everything is down significantly. This disconnect between crypto and the market is why people are saying it's time to sell crypto.

The immediate cause of this decline was a sudden drop, and it's no surprise that a recovery didn't occur immediately. However, the biggest reason is that this decline presented the crypto sector's risk and volatility as a stark contrast to the stock market. Although the stock market occasionally declines or goes into recessions, in the minds of crypto experts (and indeed, crypto investors), it's a much lower-risk and less volatile investment sector, and most major stocks have significant amounts of stable institutional capital invested.

But one month isn't an investment horizon. Zoom out, and the story becomes even more nuanced. Stocks have risen over the past 12 months, but many other stocks, including Bitcoin, Ethereum, XRP, and Chainlink, have outperformed the stock market over the same period, even including the recent turmoil.

The 30-day divergence tells you more about the crypto sector and a single eventful month than it does about crypto's long-term return potential.

This means that no matter how bad the initial chart looks, there's no need to sell all your crypto right now. Those saying it's time to exit are panicking, and therefore, they won't be in the mindset to take advantage of this period of low prices.

What a calm mind will do now:
The crypto market may or may not continue to decline. What the market does next matters more than how you handle it.

On this front, start by analyzing the investment thesis for your assets, especially Bitcoin, as well as other major currencies like Ethereum and Solana. If the thesis for holding them holds true, it may be more prudent to buy on dips rather than selling or staying on the sidelines. For example, if you believe Bitcoin's scarcity will continue to rise due to its halving cycle—and, spoiler alert, it definitely will—then a short-term price decline is not a threat to your portfolio in the long term, but an opportunity.

Another thing to do right now is to favor leading companies. Investing in Bitcoin and perhaps Ethereum on weakness is wise; Solana and Chainlink are suitable for short positions. Most other altcoins remain structurally riskier with lower demand, and their long-term survival prospects are still in question. So, avoid taking unnecessary risks until there's more clarity.

The next step is to consider your risk tolerance and assess how much you have invested in crypto assets. If this decline indicates that your investments are so high that you can't sleep peacefully at night, act now and reduce your holdings to a level where you can invest even in storms without hesitation.

Finally, use time as your advantage, not as an arbitrary bond. Instead of investing a lot of money on scary headlines hoping for a cheap entry point, use dollar-cost averaging (DCA) to plan your purchases. If the October shock subsides, steady buying will shine in the future. Also, don't neglect to diversify your portfolio; if you don't already own stock index funds, it's a good idea.

A rally in stocks isn't a reason to sell your cryptocurrency. Stay focused on the future, make informed purchases, and the rest will take care of itself.

Do you have $1,000 in Bitcoin right now?