Bitcoin plummeted below $35,000 on Sunday, down over 4% in the previous 24 hours and nearly 9% in the previous seven days. According to CoinMarketCap and CoinGecko statistics, Bitcoin's market worth has dropped to nearly $650 billion. On March 28th, it had a market worth above $900 billion.
The negative compulsion started after the Federal Reserve declared it will hike interest rates, thereby wiping Bitcoin's recent rebound.
According to CoinShares, institutional investors (companies) began withdrawing assets from Bitcoin exchange-traded funds a little over a week ago. The previous week's Bitcoin withdrawals were nearly $140 million, the most since mid-2021.
Firstly, you should never panic sell, because it will ultimately result in an even bigger loss. If you consistently sell when prices tumble, you shouldn't be investing in crypto.
The market is unpredictable in the short-term, and people are nervous. Bitcoin has been around for more than 10 years, and it's natural to see some major fluctuations in price. If you are willing to take some risk, then go ahead and buy Bitcoin now, as it is down 50% from its all-time-high of $69,000 per coin, and it will trend upwards in the long-term. It would also be a good idea to sell when Bitcoin reaches a new all-time-high. It's called "buy low, sell high". You buy Bitcoin when the price is low, sell it when it is high, and repeat. Alternatively, you can choose to just simply hold Bitcoin.
While the crypto market may be tumbling, this week, NASDAQ has had its longest weekly losing run since 2012. The relationship between cryptocurrency and stocks has been discussed pretty heavily after crypto and NASDAQ displayed a higher association than was originally anticipated.
When the world stops deteriorating more and more every minute, crypto will go back up. Our advice is, buy now, and don't just buy Bitcoin. Explore other crypto assets like Ethereum, Avalanche, Nano, Tron, Monero, and more. Assets that have less investors (alternatives to Bitcoin and Ethereum) are more volatile, and, as the saying goes, "higher risk, higher reward". When these assets reach a new all-time-high, take some profit, wait until there is a massive dip, re-invest that profit, and sell again when yet another new all-time-high is established. Thanks for reading, and we hope to see you in the next FinanceDeck post.