Bitcoin has suffered a massive crash in the past week, even after reaching its all-time high in mid-April. Several vital aspects played an essential role in the crash of the world’s biggest cryptocurrency, but the most important thing is what to do after the crash. Most of the investors panicked seeing bitcoin coming down and sold off most of their investments.
But according to some of the top crypto entrepreneurs, panic-selling bitcoin is a foolish thing to do as they are requesting investors to hold their bitcoins and avoid selling in a rush. Even though the bitcoin market came down by 30% in less than a week, experts are still recommending the investors stay patient if they can hold the funds for 3-4 years.
Instead of running towards selling, investors should focus on long-term profits and hold on to their investments. You must use Official British Bitcoin Profit if you want to make quick money with bitcoin trading. The crypto market is highly volatile, and there are few platforms that allow users to trade cryptocurrencies. When the bitcoin market crashed, these platforms faced heavy traffic, which made it difficult for some users to place their orders at the right time.
It made them miss a chance to exit the market and book some profits before the market goes down. Corrections are quite common in the bitcoin market as the bitcoin price keeps on fluctuating, but the investors need to be patient and calm during such fluctuations. If your primary ai to make some profits over the long-term, short-term price fluctuation shouldn’t affect you much.
Regulations trying to regain the trust of investors
The latest regulations imposed on crypto trading and use will help a lot in restoring the trust of investors in the crypto market after the massive downfall. Currently, the investors fear putting their money in the crypto market as the massive fluctuations in the price of bitcoin made some of them suffer huge losses. If you want to invest in bitcoin, you must not get affected by FOMO while making the investment.
Moreover, with the current scenario, you should not invest in crypto with the aim to make some quick gains. There are some strategies that you can use to minimize the impact of emotions and fear on your decision and manage the price volatility, such as SIPs and rupee cost averaging.
The best thing to invest small amounts at regular intervals without facing any FOMO. The traditional strategy of entering at low and exiting when price rises aren’t beneficial with the crypto. Instead, the investors better have SIP plans and use them to get the average volatility cycles and make the investment decisions accordingly.
The price of bitcoin has crashed due to two primary factors; first and foremost, Tesla announced that it would not accept bitcoins anymore, and secondly, the China Banking authorities issued a warning to the financial companies and advised them not to offer any financial services for crypto trading and transactions.
Tesla sold 10% of bitcoin holding to prove its liquidity
Elon Musk bought $1 billion of bitcoin, and it started the bullish trend of bitcoin. But later on, he sold over 10% of the total bitcoin holding, which helped him earn a revenue of over $101 million. Tesla’s boss stated that he sold the bitcoin investment only to prove the liquidity of the cryptocurrency and motivate others to invest in it.
He believes that bitcoin is the perfect alternative to holding cash in the company’s balance sheet. Elon Musk has been one of the top supports for cryptocurrencies, and he has also been highly involved in the market speculations. His single tweet about the company accepting bitcoins took bitcoin to $53765, but soon after that, it tumbled down when Musk posted a tweet that Tesla will not accept bitcoins anymore as they have a negative impact on the environment.
Elon musk is help responsible for all the fluctuations that occurred in the crypto market. His multiple tweets stating his different opinions on bitcoin created massive instability in the market, and the price of bitcoins fluctuated drastically, which creates several issues for the investors. On the other, Elon Musk tweeted about dogecoin and showed his support for crypto. It shot the price of dogecoin up.