The Massive boom that Bitcoin experienced after its third halving in May 2020 is incredible. We have seen this digital gold make new all-time highs every other week or so. It broke past its 2017 all-time high of ₹14,504,50 towards the end of 2020 and only two months into the new year, made a new high of ₹42,063,05
You can trace these trends back to 2017. Bitcoin rose to new heights with FOMO and increased adoption rates being the driving factors. But after touching new heights in 2017, it settled down and slid to low levels. Though nothing similar can be claimed for this rally, speculations are there that the patterns will repeat.
Whatever might be the trends going forward, one thing to note is: Bitcoin has always pulled through and made new benchmarks after hitting low levels in the past.
These market movements influence people a little too much. They get overwhelmed when their assets show an upward trend, but it may spark many questions in your mind when markets say otherwise.
3 Most Asked Questions During Bitcoin Market Crash
Given below are the most asked question during the Bitcoin market crash:
1. Will Bitcoin Bounce Back?
Bitcoin has undoubtedly had a volatile journey, but it has had an upward trend overall if you see its 2009 -2020 graph.
We experienced flat growth until 2017 when the digital gold started to pick up and underwent a rally. But after the rally was over though it experienced severe downturns, it’s settled at a low level higher than its value before the rally.
It then gradually started to move upwards from there. Now that we have again experienced an extensive rally and Bitcoin has begun to settle, cryptizens are curious to see what will happen next.
But whatever the case would be, investing in Bitcoin for the long-run has been profitable even though short term traders might have felt a disturbance sometimes. You can convert INR to Bitcoin at the best rate.
2. Shall I Sell or HODL?
Though selling looks like the immediate answer to escaping the fall, you may hold on and think twice before doing that.
Until you sell off your assets, the loss is on the charts only, but you realise those losses once you get rid of the assets.
It’s suggested to hold your investments during a downtrend if you see hopes for them to recover. However, if you feel that the investment has no scope to recover, you should get rid of it.
I know it hurts to see your investment’s value go down, but you might want to be a little practical here. Refrain from making hasty decisions. It has happened a lot of times that people have sold their Bitcoins, fearing the crash and regretted later. Such decisions should be made after a lot of deliberation.
3. Shall I Buy More Bitcoins?
Well, market crashes are one of the best times to get some refined investments at a substantially low price.
But you should back this choice with thorough research.
– How much is more the asset expected to fall?
– How much potential it has to pull through?
Once you get these straight, you then have to decide your level of commitment towards the investment. You should not get swayed by the prices and overbuy; always know your risk appetite when making such decisions. Buy BTC in India at the best rate.
This Is How the Market Works
Every market goes through phases, and every asset experiences ups and downs. And Bitcoin or the Cryptocurrency market is not immune to that.
If you invest in fundamentally strong assets and hold them for the long run, these crashes won’t affect you so much. However, it is also important to monitor your investments and know when to get out of the market.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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