People who invested large sums of money in bitcoin had thought that they were done panicking when the price climbed over $10,000. However, that did not last for very long at all. According to newsbtc.com, the price has been dropping very steadily since then. In fact, it has fallen by a whopping 10 percent over the past week. It is now barely worth more than $8,000. There are many people who are wondering how far it will drop this time. It fell as low as $6,300 last year. The smart thing to do is just ride it out and wait for the value to go up again. People who panic and sell now will only end up losing money in the long run.
It is generally believed by experts that the coronavirus outbreak is causing the value of bitcoin to drop. However, there are many other factors that play into the massive drop that bitcoin has experienced over the past couple of weeks. There is a common mistake that people make regarding big price drops. They panic and start selling a lot of their bitcoin. They think that if they sell quickly, they will be able to avoid losing more money if it keeps going down. However, that is not sound logic. Smart investors know that the price of bitcoin is going to go up again. There is a very good chance that it will once again climb over the $10,000 mark. Therefore, being patient and waiting is what people need to do. However, some people are not strong enough to do that.
Bitcoin is famous for making large and unpredictable jumps in price. It jumped up more than $2,600 last October. This has many investors feeling very optimistic about what the future has in store for the value of bitcoin. The reality is that people who invest their money in bitcoin or other cryptocurrencies need to be prepared for large gains and losses happening over a short period of time. People who get nervous about such things should invest in something that is a lot more stable.
There are many people who are worried about the volatility of the global financial markets since the coronavirus became a problem around the world. Some of these people have sold stocks and bought bitcoin. They have done this thinking that bitcoin value would not be impacted by the coronavirus panic. However, it seems that is not the case.
Dil Bole Oberoi
