Crypto Market Crash: Is it Right Time to Buy the Bitcoin?
The sudden drop in crypto market has shaken every investor globally. This amazing Bull Run of 2021 was sparked by many reasons including China’s restrictions over financial institutions, Elon Musk’s tweets, and US Control. Even, some market experts are bickering that the crypto market got too close to the sun as many people across the world heavily invested in risky and complex currency like Dogecoin. Regardless the fact, that Bitcoin and Ethereum fell to more than three-month lows, it’s still more than 300% over the last year, trading at mid-January duration.
Whatever the reasons were, the biggest question whether one should buy the cryptocurrency in this market bloodbath is in front of us. Indeed, investing in cryptos is much more complex and riskier than the conventional assets as its anticipation is uncertain and quicker. From past few weeks, we definitely had got the idea that bitcoin market can change anytime and due to anything. Now, people are hanging like pendulum whether to offload their holdings hold them or buy the dip.
In the Hope for a Crypto Rebound in the Near Future
The good news is that even after this drastic dip, many people are optimistic and has expressed their interest in buying the dip, hoping for a bounce back of Bitcoin and other currencies in the near future. However, some of the crypto experts have suggested that it isn’t the right time to put money in the market, keeping the high volatility and uncertainty in the mind. Moreover, at this moment the experts aren’t able to forecast the crypto market due to battered valuations.
Does Tesla’s Musk have the Power to Change the Future of Bitcoin?
It could be no coincidence that after a series of Elon Musk’s tweets directly and indirectly indicating at Bitcoin and Ethereum crashed the market by nearly 35% to 45%. Moreover, the Tesla CEO clearly tweeted that they won’t be accepting Bitcoin as payment due to heavy environmental toll. Again, it was Musk’s tweets where he tweeted a ‘diamonds hands’ emoji that raised the chart of Bitcoin again and stopped Wednesday’s broad-based rout.
Should I Invest?
It varies from person to person that whether they are prepared to take the risk. If you are seeking a secure, long-term investment option, then cryptocurrency definitely isn’t the ideal choice, considering the high risk and volatility factor.
However, if you have the audacity to take the chance and risk in cryptocurrencies, it could be right up your alley. Indeed the currency comes with greater uncertainties but also increases the money by many folds. It gives way much higher benefits as compared to conventional investments if you keep gimlet eyes on the daily trends, however while being prepared for frequent bouts, concurrently.
The key is to remain patient and no let go of your investments in case of rising uncertainty. People interested in crypto investments should also look at diversifying their portfolio and looking for long-term options like Ethereum, predicted to be the next big virtual coin in the market.