Are you constantly worried about a Bitcoin crash? Below is why you should not worry about a Bitcoin crash.
Bitcoin is the most volatile cryptocurrency, with a track record of boom and bust cycles that have left many wondering whether it is safe to invest in it. This digital asset has crashed below $18,000 for the first time since November 2020, which is the latest in a series of price crashes in the Bitcoin market, which has seen this digital asset drop more than 60% in value over the last seven months.
Unlike traditional investments, like company shares, where business performance may influence price movements, this digital asset has no underlying backing. Consequently, the basis of price movements is purely speculation among investors about whether it will rise or dip in the future.
More so, when assets rise very quickly in price and surge to a record high, typically, this results in a crash much more likely.
Why a Bitcoin Crash is happening
Experts claim that this virtual money crash is happening because of the global climate. It is not just in the crypto world that things are not looking good; inflation is soaring, recession looms, interest rates are rising, and the cost of living is high. Stock markets are wobbling, with the US S&P 500 now in a bear market, down by 20% from its recent high.
Consequently, even the big investors are less free with their money. What’s more, ordinary investors may have little to invest in anything as volatile and unpredictable as cryptocurrency feels like a risk too significant in these times.
This digital money is unregulated and unprotected by the financial authorities, so if you are using your savings to invest in it and it loses value or access to your crypto wallet, your money has gone. Here is why you shouldn’t worry about a Bitcoin crash.
Crashes Create Opportunities
Crashes in the price of this digital money are nothing exceptional together with the intelligent money drools for their occurrence. As a result, the media and politicians can argue for or against this digital money. However, your job is to stay put and accumulate more virtual money after every dip. Buy every drop via exchanges such as bitcoinsprint.io. Recently, it is pretty clear that buying on dips has been an easy way to boost your profits. In the end, significant drops lead to high returns and vice versa.
In addition, it is essential to note that crashes are like waves. So, crashes are to the Bitcoin market what the waves are to the ocean. And similar to the sea, the market is a dangerous and even deadly place for unprepared people. This comparison’s main point is to show that Bitcoin crashes are a natural phenomenon.
The Crash Shall Pass Too
During the twelve years, this digital asset has existed, this virtual money has proved that crashes never last. Moreover, this digital money has proven that sometimes the market recovers with lightning speed. On the other hand, the reversal of a Bitcoin crash takes years.
For instance, during the 2017 crash, this electronic currency took more than three years to reach its peak levels. In the end, this digital money always recovers. However, crashes are a part of the game and are unpredictable. And the only reliable way to avoid being affected ay them stay the Bitcoin altogether.
The Bottom Line
Bitcoin crashes hurt a lot, but they don’t have to. This article has proven that Bitcoin crashes do not have to be a source of constant anxiety. After, even other investments have their ups and downs. Therefore, crypto investors should hold on tight and wait for the crash to pass.