According to data from Google Finance, the price of Bitcoin is seeing itself go below more than half of its all-time high, $66,000. At the time of this writing, the cost of 1 Bitcoin is $30,635. The reasons for this fall in market price are still unclear. Still, reports from an interview with a local Bitcoin analyst highlight the uncertainty investors exhibit due to government restrictions, usage, and acceptability of cryptocurrencies. As a medium of exchange in some countries, this is a big deal. Some sources say the fall of the price is due to the Do Kwon debacle and other highly leveraged, speculative trades on the 10,000 plus Alt-coins.
The Dip and Bitcoin Investors
The dip is a term Bitcoin market exchangers use to describe the plummeting price of Bitcoin. With these drops in prices, Bitcoin investors who purchased it during its bull run feel the effects more because they had ventured into the crypto market with hopes for profitable returns. Investors already know the risk, but it’s still hard to ignore the pain of watching the most popular cryptocurrency drop to more than half of its all-time high. This results in fear, uncertainty, and doubt, fueling the panic selling of Bitcoin on the exchange market.
Holding and Folding
For new Bitcoin investors who bought it for the first time late last year or early this year, panic selling is understandable but logically not advisable. You stand to lose both in profits and your invested capital. The dip is the open window and the best opportunity to buy for investors exploring the Bitcoin exchange market. As the price of Bitcoin drops, some investors look to sell due to its low-risk management level.
Is There Hope For a Bullish Run?
No one knows or can determine and predict the price of Bitcoin at any given point in time. Although past events have shown that after the dip there tends to be a rise in market price. According to Heritage Falodun, (Co-creator of the Bitcoin in Nigeria Podcast), he said and I quote, “Dips are inevitable, a bear market will always fade off with a bull market and vice versa. Every all-time high will become a dip, and new all-time highs will always be attained”. Most Bitcoin analysts believed 1 Bitcoin = 1 Bitcoin, noting that price action & speculations shouldn’t be the significant point of discussion because the price of 1 Bitcoin would always be reaching an all-time high compared to fiat. This will always remain true as Bitcoin gradually gains acceptance and recognition as a medium of exchange among companies, countries, and worldwide. It’s only a matter of time, and how long? No one really knows.
This is financial advice that should not be considered financial advice. Still, the dip is the right time to buy and invest in Bitcoin, and it takes a patient and intelligent investor to hodl their Bitcoin during the price drop. So hold your coins if you have the stomach for them and if you bought them at a high price and want to sell at the dip, accept your losses and fold. Nothing comes easy; try your best beyond your reach to be a good investor and an experienced Bitcoiner by HODL’ing and not FOLDing.
This is a guest post by Francis Adalikwu. Opinions expressed are entirely their own and do not necessarily reflect those of Satoshi’s Journal or Satoshi’s Entertainment Company.