Just five days after almost reaching $20,000 the price of Bitcoin fell to less than $11,000. This caused panic selling from many investors who are new to Bitcoin. Those who have been in the space for a number of years have seen this all before, although the amounts of money we are dealing with are much higher.
If you are new to this market and have held on to your Bitcoin despite the drop, well done. When all you have experienced so far is a bull market, it can be a scary thing to see the price falling so rapidly, especially if you bought in at the peak. Staying calm, thinking long term and learning from the past can all help you in continuing to resist the temptation to panic sell.
Percentage wise, Bitcoin has seen far greater falls in the past, yet has always recovered to reach new all time highs. In 2011, the price peaked at $32 before crashing and entering an extended bear market that took it all the way down to $2. That's a correction of more than 90%. Next, in 2013, the Bitcoin price climbed from $13 to $1,100 before crashing and once again entering an extended bear market. This saw the price retrace to a low just above $200 — an 80% drop.
Those who have held their Bitcoin throughout these seemingly catastrophic crashes have been richly rewarded. Panic selling, on the other hand, has led many to regret their decisions.
Stay calm, remember why you invested in Bitcoin, and for further tips on surviving the ups and downs of the market, read How to Handle Bitcoin Price Volatility and Lessons Learned from the Bitcoin Crash of 2013.
Bitcoin to the Moon is a blog dedicated to following the original cryptocurrency on a journey to its ultimate destination.
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