Bitcoin Loses Over $254 Billion in Value Over the Weekend in Biggest Dump since March
After hitting an all-time high of $53,276 Canadian on Friday, the price of Bitcoin has done nothing but plummet. It’s down more than 26%, meaning that the market capitalization of digital gold has seen more than $254 billion shaved off of it. The good news for investors waiting to buy the dip is that the current price is now sitting at $39,629 at the time of this writing.
Major Crash or Healthy Correction?
Investors just getting into Bitcoin now thanks to the fear of missing out are likely to label what’s happening as a major crash. After all, losing 26% of your value in equities or any traditional financial asset class might have you feeling like you just got duped by Wall Street.
Cryptocurrency however is not like Wall Street. It’s important to keep in mind that when the coronavirus pandemic grabbed hold of the world back in March of last year, a Bitcoin could have been had for less than $7,500 Canadian. Holding Bitcoin at that price now means you’re sitting on a more than 500% profit.
It’s important during times like this to keep things in perspective and avoid panicking. Remember that Bitcoin was sitting at just $14,000 Canadian at the beginning of October.
Still, there is a chance we are on the verge of a crash. What should you do about it?
Take Profits in the Short Term, or Hold for the Long Term
There are two reasons it’s not appropriate to give you financial advice. Firstly, nobody can predict what’s going to happen to the market tomorrow with 100% accuracy. Secondly, nobody knows your level of risk tolerance or your financial situation better than you.
If you only got into Bitcoin a few months ago, you’d be smart to take some profit. If you’re willing to hold some for the long run or you’ve already been holding for a long time, you likely want to keep some of your capital exposed to crypto because you obviously believe it will be a big part of the future.
One of the best ways to enter and exit the market at a moment’s notice is to trade for stablecoins like the U.S. Dollar Tether token or Canada’s own QCAD token. You can trade for both of those at Netcoins. Just register for a free account, transfer your crypto over to your Netcoins wallet and make the trade from there. It’s that simple.
Remember that cryptocurrency markets can be quite a wild ride. Keep some for the long term and hang onto your hat in the meanwhile.
Writer, content marketing at Netcoins.