For Bitcoin and other cryptocurrencies, it has been a rough week. In the last 30 days, Bitcoin has witnessed a continuous fall in its prices and currently is down by 18%. The dump in the prices of Bitcoin and other cryptocurrencies has also started to affect NFT prices, which started to show hints of weakness. 

For new investors in the crypto market, this will be an entirely new experience. In the past two years, there has been significant growth in the volume of investors trading in the crypto market through different exchanges. 

This means that there are millions of investors who are witnessing the wrath of the crypto bear market or the effects of extended ‘crypto winter’. At this point, it is hard to predict if we are heading for either of the two, but we also can’t deny both possibilities. Therefore for new investors, psychological preparation is very essential.

Bitcoin falling to $40,000 isn’t a catastrophe, especially for investors who have been in the market for some time. It was just a year ago when BTC for the first time touched that price. It was also down to $38,000, recently in July of 2021. The current 38% fall in prices of BTC, since November when the prices were at their peak, is nothing in comparison to the biggest crashes of the token. Back in 2018, the BTC crashed by 84% in over a week.       

The current dump is maybe bothering the investors, who invested in crypto when it was at its peak. But for investors who looked for good entry points to invest in, this situation is not alarming, as they are still in profit. 

Back in July, when the market saw a sharp crash, the prices recovered handily, this was caused by subsequent major development like the adoption of Bitcoin by El Salvador and Twitter. This could also happen this time, and the current trend could get completely reversed.    

Also, each time there is a fall in the prices of crypto, a huge inflow of speculators and venture capitalists gets attracted to the market. These have no or very little knowledge about the technology and are only in the market because of FOMO. Most of the time, they buy tokens that are sham and end up losing big. 

Some of them who get burnt, are like new investors who are burnt now. Either they will leave the market or they will learn from their mistakes and get more involved and committed.

It is expected that in the future Bitcoin will find a steadier “correct” price. It is important to remember, no matter what the price; integrations, new ideas, and adoption will always be high. Millions of people will join the crypto industry, using or even developing a cryptosystem, building for a strong foundation of growth in the crypto market that would eventually happen. Investors should be patient and should plan their portfolios accordingly. 

Disclaimer: The article is meant for the educational purpose only and in no way it should be considered as financial advice. Own research on the topic is advisable.

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