Bitcoin’s price falls below $35k on Monday after nearly hitting $42k mark last week. The crypto investors are anxious over this new development.
Bitcoin broke records in the past 2 months. After lingering around $10k for quite some time, BTC bullish rally started in the latter half of November 2020. The new year had a great start for crypto traders with BTC breaking $30K barrier.
The bitcoin value kept surging till Sunday. However, it has suddenly started going down. In the past 24 hours, bitcoin’s price has fallen 13%. The value of the currency is $35,372 at the time of this writing. Investors are wondering whether it is a crash or a correction.
Is Bitcoin Crashing?
Many financial advisors were sceptical about the bull rally and expected a free fall at the end. So is bitcoin really crashing?
We cannot say with surety whether this was a dip or a bearish trend. Nonetheless, no need to panic. As a bitcoin investor, you should know that BTC is a volatile currency. It does surge or plummets at speed. However, after every bull trend bitcoin keeps some of the gains. Investing in bitcoin is a good strategy if you can control your emotions when the market takes an unfortunate swing.
A Twitter user @xrpdarren articulated the emotions of anxious bitcoin holders as follow:
BTC increases 22K in a month or two but when it drops 4k its “crashing” “plummeting to hell” “going to zero”.
Bitcoin’s price falls depending on market emotions, supply and demand & other outside factors. At present, the demand for BTC is high. Many institutions like grayscale are buying bitcoin in bulk. Hence, we cannot expect bitcoin to vanish into thin air. It is yet to find support or resistance. Till then, hold your horses.
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