Bitcoin has suffered a massive crash in the past few days. The price almost crashed to $20,000, the lowest it has been in 1.5 years. Many investors are afraid that the Bitcoin price could collapse. Can Bitcoin reach 0 $? Should You Sell Bitcoin Now? In this article, we discuss the possibility of selling your bitcoin and give you the reasons for it. Get to know the pros and cons of selling bitcoin!
What happened to Bitcoin Price?
The Bitcoin price collapsed massively in mid-June 2022 and is causing investors extreme concerns. Bitcoin fell from around $30,000 to $20,000 in just a few days, losing a third of its value in a short space of time. In a previous article, we did warn that any breach in the $30,000 price mark can lead Bitcoin prices to freefall all the way towards $20,000. This is because there were no real support areas anywhere between those 2 prices.
Bitcoin was hovering between $29,000 and $32,000 for the past few weeks before the crash. Then the Bitcoin price fell below the support at 29,000. After that, many investors started selling their Bitcoin massively and the price continued to collapse. When the price fell below 30,000, bitcoin crashed at a massive rate and went to almost $20,000.
What were the reasons for the Bitcoin crash?
Bitcoin experienced a massive crash. What were the concrete reasons for this massive decline? Many investors are now asking themselves the question and wondering how Bitcoin could continue if these reasons continue to apply in the future.
We have been in a bear market for the past few months. Since November, when the Bitcoin price was at an all-time high above $68,000, the Bitcoin price has been falling steadily. We have observed several crashes since December 2021. The main reason for this market situation is the extremely tense economic and financial situation in the USA and Europe. We have to look at the high inflation in particular.
In order to counteract inflation, the US Federal Reserve recently had to raise interest rates by 0.5%. The Fed hike was the highest in over 20 years. This is crucial as bitcoin and other cryptocurrencies have benefited from extremely low-interest rates in recent years. The increase in key interest rates ensures that risk investments will become less attractive in the future.
What Caused the last Bitcoin Crash?
The massive crash in June was triggered by new inflation data coming out of the US. The appreciation of the US dollar will continue. Further increases in interest rates appear likely in the future. The stock market fell sharply afterward. Bitcoin and the entire crypto market also developed in parallel.
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Should you Sell Bitcoin?
Bitcoin took a massive nosedive that has many investors doubting their investments. According to the statements of many concerned investors, Bitcoin threatens to implode soon. So is it worth selling Bitcoin now? We present the arguments, pros, and cons of selling bitcoin.
At the moment, the Bitcoin course is on a descent that hardly seems to be stopped. Bitcoin went from $68,000 to $20,000 in 7 months. Bitcoin lost more than 70% of its value during this time. The investment in Bitcoin and other cryptocurrencies loses more and more value over the weeks.
In order to be able to prevent the total loss of value, you can now sell the bitcoin in order to have the current value of the bitcoin paid out. You should do this if you believe that Bitcoin could continue to fall massively in the coming weeks .
Another fall in bitcoin price could be because the negative factors that are causing bitcoin to fall will continue in the near future. Because inflation in the USA and also in Europe seems to continue to rise and the stock markets hardly seem to be able to recover in the near future.
The following arguments therefore speak in favor of selling Bitcoin:
- You can cash out directly if you need FIAT money at the moment.
- If you believe in a further loss in value, a sale could still be worthwhile for you now.
- You can invest your Bitcoin money in other assets such as gold to avoid inflation.
- Other investments, such as staking, are possible.
While there are a few reasons why you should sell bitcoin now, holding bitcoin is a logical step that makes more sense for most investors. Many investors are panicking and are now dumping their cryptocurrencies. They do not take into account the fact that Bitcoin and other coins can be worth many times over in a few years.
Therefore, the bear market seems to be the worst moment to sell the bitcoin. Many investors who bought in the bull market would write massive losses. This would only make sense if an investor believed in a complete Bitcoin implosion. However, this is very unlikely.
Therefore, the following reasons speak against you selling Bitcoin:
- The value of Bitcoin is extremely low, so selling it makes little sense in the long term.
- If you bought in the bull market, you will make losses if you want to sell the bitcoin.
- A sale would most likely come out of an impulse to avoid further losses. But if you look at it logically and soberly, selling in a bear market makes less sense.
Is it Worth Buying Bitcoin Today?
Bitcoin is currently in an extremely difficult phase. But more often in the past, we have seen extreme price losses and critics of Bitcoin thought that the cryptocurrency could implode. Another bull market in the future seems very likely. However, we will probably have to wait a little longer for better times.
Buying bitcoin makes sense for investors who have the patience to wait for the next bull market before taking profits. But a bear market and especially a strong crash always offers the opportunity to accumulate Bitcoin at low prices. Therefore, you should consider buying the Bitcoin and accumulating more Bitcoins instead of selling the Bitcoin.
You can also purchase Bitcoin and other cryptocurrencies on the crypto exchanges Coinbase and Kraken .
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