The Crypto market is experiencing the worst slump of 2022 so far. As the year began Bitcoin’s price dropped below $43,000. Bitcoin’s new journey started a few days after Christmas and now its have entered into 2022 with the whole crypto market shaking.
Our article will be focusing on what will be the new journey for Bitcoin from here and what will be the condition of Cryptocurrencies in the coming months and what investors should keep in mind while investing in Bitcoin or any other desired Altcoins.
Bitcoin Resisting Against The Slump
The slump was building up since December 2021, however, Bitcoin restored its value after hitting $52,000, and throughout the last week of 2022, the condition was almost similar from Bitcoin $44,000 to $50,000 and back to $44,000 ranging toward $48,000.
Things went south after COVID-19’s new variants started popping out and cases are increasing in no time, Whales have already drawn away from their mega investments in the market leaving holders on their own to experience this slump.
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Economic Uncertainty Shakes The Market
Bitcoin was increasing in value the whole year after crashing in June 2021 with an all-time high reaching $68,000 in Nov 2021. But December’s volatility and stalling prices began with the uncertain economic conditions over the Omicron variant and new statements from the government of the US regarding crypto regulation are what triggered the situation to take a dire turn.
Bitcoin’s recent price is still showing an upswing and exerts are believing that this will rise above $100,000 in the coming months. Ethereum is after the footsteps of Bitcoin, experiencing its all-time high with prices over $4,850 but quickly affected by the dump.
Investors Take on Price Drop
After the shaking situation of the crypto market, it is visible that the conditions are favorable for the long-term investors only and not for the impatient ones. Investors should focus on a buy-and-hold strategy to avoid losing and giving away their holding due to the sudden swings as they are expected to come more and more with COVID-19’s threats.
Avoid checking your investments during such intense volatility, many cryptocurrencies lose their value with crashes and restore it quickly after the market gets stable. Keep your cryptocurrencies investments under 5% of your portfolio to avoid losing too much with the swings.
Moment of Opportunity
Whenever such sudden swings happen, two possibilities occur; the first possibility is that people lose their asset’s value, and the second is people earn and gain from such swings. The people who earn from such swings usually buy more and contribute indirectly to restore that specific currency’s value.
For the long-term investors, it is a golden opportunity as Bitcoin will likely rise and restore its value to an all-time high. The best strategy is not to give away what you currently hold as an asset.
At such times people should look for a coin that has the potential to rise after the slump quickly. Such dips have resulted in mega rises before as well. You can cover all the missed opportunities that you neglected in the previous months.
Consider it as a mega sale where you will have the upper hand and get to grab the diamonds of the Crypto market until the market stabilize again and Bitcoin restores its value. However, it is better to visit trustable sites to avoid potential risks and manage them beforehand.
The Bitcoin new investment journey is full of risks and profits and the ongoing swing is no different. The best option would be to hold the assets for as long as you can as this market operates on the role of demand and supply as soon as the demand goes high the prices surge and when the demand goes down the prices drop.
Investors might be able to see a rise in the price in the coming months as the threats of pandemics fade away. It is time that time in the market when most people will panic and leave a lot of precious assets by releasing them, but wise buyers can visualize the opportunity behind this mess and use consultation and tracking to choose which coins they want to invest more.