It has not been a good 24 hours for people who have invested in bitcoin or other cryptocurrencies. Their value has plummeted just like the global financial markets. There is no question this is being caused by the global pandemic that is killing people around the world. It is not known when things will turn around. Needless to say, investors in many countries are selling many of the bitcoins they have. Thousands of people selling at the same time has resulted in a bitcoin crash that caused a loss of almost 50 percent of its value. More than $93 billion of the global value of bitcoin has been lost in the past day. It is a very dark time to be a bitcoin owner.
There is no question that bitcoin and other cryptocurrencies are very valuable commodities. People who invest in them are used to seeing large swings in value. However, having bitcoin lose more than half of its value in a single day is a lot for even the bravest of investors to deal with. The smart thing to do is hold onto your bitcoin and wait for the value to eventually rise again. However, that is much easier said than done for many people. There are some less experienced investors who feel the right thing to do is sell quickly before the bottom falls out any further. That is not a sound strategy.
The coronavirus is something that even the most experienced of investors have never had to deal with before. Therefore, some people are panicking now when they would stay calm under other circumstances. The reality is that all of the financial markets are a disaster right now. This is true no matter what you are choosing to invest in. Bitcoin will bounce back. It is just a question of when.
There have been worse periods for the financial markets. The 2008 financial crisis caused a lot more money to be lost than the current downturn in the market. This should give bitcoin investors around the world reason to not lose hope. However, some people will be very tempted to start selling their bitcoin if they have to endure another few days of big losses. The market recovered very nicely after the 2008 financial crisis. This means that a big turnaround for bitcoin could be right around the corner. Only time will tell if that will happen.
Further Reading: https://cointelegraph.com/news/crypto-traders-explain-what-caused-the-bitcoin-price-plunge-to-3-000
