Bitcoin and Cryptocurrency Beyond the dip – Keep Calm and Hold

Now that the entire cryptocurrency world has been met with a major wake up call, the question is how things will evolve moving forward. It is evident a lot of money has been pulled out of the total market cap.this does not mean there is less interest in Bitcoin and other currencies, though. The next few days will be quite critical for the future of cryptocurrency as a whole.

Cryptocurrency Is Just Fine Despite The Dip

It is never a fun feeling to see Bitcoin, other currencies, and digital assets take a few punches to the chin all of a sudden. As we have seen over the past few years, sharp price increases are often followed by even sharper declines. That is the natural order of the financial sector, and cryptocurrency markets are no exception to this unwritten rule.

That being said, it is quite important to take this recent price dip into consideration. Everything has to be framed in the proper perspective. The current Bitcoin price is a lot lower compared to what it was a few days ago. However, it is not all that different from the Bitcoin price about a week ago. Many people tend to overlook that fact, for some unknown reason.

The same applies to virtually every other cryptocurrency and digital asset on the market today. Everything has lost a lot of value over the past 48 hours, yet things are in virtually the same position they were in not all that long ago. Seeing major gains wiped out in a matter of hours is not a fun feeling, but it is only to be expected from time to time Growth is often met with minor setbacks, and that is what we are seeing in the cryptocurrency world right now.

These setbacks do not necessarily mean something bad is about to happen to cryptocurrency as a whole. Yes, things have been shaken up quite a bit, and prices may continue to slip down for a few more hours to come. At the same time, the Bitcoin market often rebounds a lot quicker compared to any other form of financial commodity the world has seen so far. It is impossible to predict what the future may bring, but things are not looking as gloomy as some people predict.

Looking at the Bitcoin markets right now, it is evident things continue to look pretty promising. When looking past all of the altcoin markets, Bitfinex’s USD market and Kraken;s EUR market are still generating over US$100m in volume. The Korean market on Bithumb is doing quite well as well, and GDAX and Bitstamp are contributing nicely as well. If these volumes keep up, there is no reason to panic whatsoever. That is easier said than done, though.

If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.

  • Superman

    Early in the week we decided to invest in Bitcoin via the Greyscale Bitcoin trust (GBTC) for the convenience of being able to buy and hold through our regular brokerage account. We knew there was a premium to be paid. GBTC markets Bitcoins sold in tenths, so that a Bitcoin selling for $2500 can be bought in .10 increments of $250 apiece. Except that weighty premium made them more like $400 apiece. But there they sit. In the familiar brokerage account, along with all those other stocks, showing all that other comparative info like how much you paid, and how much its appreciating from second to second. They also hold the Bitcoin for you in that trust, so no need for a wallet that might get lost, or stolen, or thrown out, or forgotten, or struck by lighting in a hard drive, or held by some soon to be bankrupt company. It was worth the premium to us for an added layer of security and regulation. The next day we bought a little more, and paid a little more. The next day after that we bought a little more, and paid even more that the last day. Finally, we reach that point where we have enough, but not so much that the worry keeps us up at night. Its now Saturday morning. Bitcoin has dropped from about $2800 early in the week to about $2000. We anxiously click on the Coindesk favorite to check the price. Its going to be a long weekend.

    • you fucked up esse

    • Buy a trezor for $100 and have even more security than you can get via GBTC….if you dont own the bitcoin wallet keys, its not your bitcoin. You could have been buying at a far reduced price, with much more security all along.

    • Joel Lee

      The worst thing that you can do is panic sell. My advice: hold onto the GBTC and forget about it for at least a month. Continuous watching of the market will make you crazy and sick. Rest assured that you will be able to sell at a profit later on. It might be a while, especially since you paid a ridiculous premium, but you’ll be able to unload at a profit.

      In the meanwhile, read more about bitcoin. Learn how to secure it on your own. For instance, I use a dual boot “airgapped” solution where I have an offline Ubuntu partition that I use to generate keys and sign transactions. This costs zero dollars to do and IMO, provides better security than Trezor. But read up! And then when you can get out without taking a loss, sell the GBTC and buy your own BTC. You’ll be able to get more than you had to begin with, because you won’t be paying the silly premium. A few years from now, you’ll be sitting where I am. A 30% market correction doesn’t make me bat an eye. Bitcoin could go down to $600 and I’d still be sitting on a nice profit, and I have seen all of this happen before. If you believe in the long-term future, short-term corrections like this bother you a lot less–especially after the market has had time to rise far past where you bought in.

  • hmmmm best way to get your insight about benefits of compliant global incubator ?

  • Frank Jules

    Frenzy buying indicates a top and market crash – The herd always gets it wrong – buys at top – sell at bottom….History repeating itself…..

  • Joel Lee

    The next few days will not in any way be critical for the future of cryptocurrency. I swear, every little hiccup, and people freak out. This was a normal, healthy, and overdue correction. What happens in the next week may be that it bounces back, or that the correction continues. Either way, it will not decide anything whatsoever about the long-term future of cryptocurrency. That will be decided on the actual fundamentals of crypto, and that has nothing to do with what speculators do to the price in the short term.