Will the bitcoin fall scare away investors?
Most of the cryptocurrency experts are worried that the current downtrend in cryptocurrencies would actually scare away investors. However, if you go by history you would realize that there have been such collections of equal or even greater ferocity in the past as well. Cryptocurrency has risen above the peaks in the past as well and has risen from the Valley’s as well. This is one of the main reasons why cryptocurrency enthusiasts still believe that it has a long way to go.
Cryptocurrencies have recently gone mainstream. Up until a couple of years back only the tech-savvy investors were able to invest in cryptocurrencies. However, in the last one year, the normal public has also invested in cryptocurrencies owing to which, the rise in cryptocurrencies has been baffling.
The recent correction of around 50% from the peak would not actually scare away the investors as Bitcoin would quickly rebound from it. Moreover, the other cryptocurrencies are already rebounding from it as well. This would ensure that most of the people are able to recoup the losses quite quickly. The panic selling which was initiated due to the fall in prices seems to be over. The Bitcoin prices have already recovered from the lows of below $ 10,000. Currently, they are treading over $ 12,000. This is one of the main reasons why it would not actually scare away the investors as well.
Moreover, the leveraged trading in Bitcoins has started only recently. This is one of the main reasons why investors do not have a lot of money stuck in Bitcoins.
Moreover, the institutional investors which are involved in the futures contract are also few and far in between. This is one of the main reasons why the investors are here to stay.
If you go by the history of Bitcoins, you would realize that in the past as well there have been 2 to 3 such downturns in Bitcoin. Since then, it is recovered and flourished as well. Therefore, if you go by the history you have nothing to worry about. As long as you’re willing to hold Bitcoins for a longer period of time, you would not only be able to get your prize but also you would be able to get a good amount of return as well. This is one of the main reasons why the Bitcoin crash would not actually scare away the investors but would rather present itself as a buying opportunity. This would actually attract more and more investors who seem to have missed out on the earlier rally as well.