Bitcoin Downfall: Is It Time to Get Out?
With bitcoin plummeting and the market plummeting with it, I get asked the same question frequently: is it time to get out?
That is a tough question to answer
Bitcoins all time high price was right around $20,000 but the price recently fell to right around $5700. That is a 71.5% decrease in price in 6 months. To most people that is an unheard-of decrease, but in cryptocurrency a decrease like that is healthy for the market.
What I mean by that is, bitcoins growth would be unnatural if it grew only up. Throughout the growth there must be dips and crashes, it’s healthy for the market as a whole. The stock market goes through similar cycles without the volatility.
That now brings me back to my original topic, is it time to get out? In all honesty, if you watched bitcoin drop from $20,000 to $15,000 to $10,000 to $5700 and you didn’t sell, now wouldn’t be the best time to get out. The best time to get out was months ago, and that’s easy to say in hindsight but it’s true. At the end of the day only you can make the decision to get out. If you believe that cryptocurrency will be around for a long time then it wouldn’t make sense to sell if you’re already down 71.5% from all-time high. The market will start growing again, but it may take months and in an extreme case maybe even years. While the price is down take time to educate yourself so the same mistakes don’t happen again.
My current outlook on bitcoin for the coming weeks: