Bitcoin Crash 2022: Should you buy the dip?

Bitcoin has fell around 26.73% since the start of 2022. It’s now trading at about the same level as it was in early 2021, implying that all of the previous year’s gains have been erased. Investors must now determine whether this is only a blip on the radar or the start of a long-term crypto winter.

The term “crypto winter” refers to a period when the price and popularity of digital assets are both fluctuating. The Pandemic boom cycle appears to be coming to an end. Cryptocurrenc traffic has dropped significantly, and the industry is facing a slew of new rules that could suffocate it further. Another crypto winter is bad news for traders, but wonderful news for investors ready to take a long-term risk and hold on to their holdings. If you day trade, an extended stretch of low pricing isn’t interesting. However, if you have a long time perspective, this atmosphere is incredibly favourable.

These kinds of market catastrophes can be extremely stressful. If you’re tempted to sell at a loss, remember why you got Bitcoin in the first place and focus on the long term. Panic selling is rarely a wise idea, as you will almost certainly lose money if you sell now. On the other hand, purchase the dip is a popular rallying cry on social media.

If you’re thinking about investing right now, consider where you think cryptocurrencies will go in the next 5 – 10 years. On the one hand, adoption is at an all-time high. El Salvador has already made bitcoin legal tender, and other countries may follow suit. Bitcoin is increasingly being accepted as a form of payment by merchants. However, it is still a relatively new asset. Its growth could be greatly hampered by more regulation, and it is exceedingly volatile. Furthermore, Bitcoin mining is a disaster for the ecology.

Bitcoin is so unpredictable, you should only invest money you can afford to lose. Some people get excited about the prospect of purchasing Bitcoin on sale and spend money they don’t have right now. However, there are no promises that Bitcoin will rise again in the near future, so proceed with caution. You don’t want to be broke in your later years because you lost money in a crypto crash.

Bitcoin has had a bad start to the year and could fall even more. If you believe in crypto and have money to invest, buying now might be a good idea — as long as you’re willing to wait out any further declines. However, if you have other financial obligations and don’t want to chance a dangerous investment, skip this one.

To get the latest crypto updates, follow Clout News on social media and don’t forget to subscribe to our Newsletter. If you have any queries, let us know in the comment section below!

Leave a Reply