BTC has dropped by 45 % compared to the all -time high
BTC has dropped by 45 % compared to the all -time high
Source: Gopixa - Shutterstock
- Bitcoin is traded at $ 38,340 at the time of printing, and although it acted sideways last week, it dropped by 45 percent compared to its all -time high in November.
- dealers announced how they were completed with the break -in, including the question of whether they took profits with them, scored as a BTC and how they can best secure investments during a baisse.
Since reaching its all -time high of $ 68,680, Bitcoin has lost 45 percent of its value and was $ 38,340 when the editorial deadline. During this time it lost $ 600 billion of its market capitalization when a bear market started. When it crashed, decimated Bitcoin the positions of many dealers, with those who worked with lit positions to feel the largest pinch. Some crypto dealers informed how they dealt with the break-in, their tactics to secure their investments and the lessons they learned.
only another day in crypto
While the market slump has been massive since November - the entire cryptom market has lost more than $ 1 trillion - crypto dealers are used to such changes. Like Jesse Powell, CEO von Kraken, once said: "For me it is only a normal day, just a walk in the park."
Wendy O, who is known to her social media fans as a cryptocendyo, is agreing with Powell. The dealer, which has become a big hit on social media-she has 232,000 follower on TikTok- told Zeit-Magazin:
crypto is very volatile. We will have bad swings. And that's okay. People are confused and think: "Oh, I'll have massive profits all the time" - but things don't work that way. Because we have volatile, massive profits, we will also have volatile, massive swings.
As the following graphic shows, Ethereum and Bitcoin have experienced much more aggressive market movements since 2018, be it profits or losses than the S&P 500.
For some traders, the zooming out and looking at the overall picture kept you running. Evan Rodgers told the publication that his focus was on collecting Bitcoin, regardless of the decline in price, or in crypto jargon, stacked Sats.
If the price drops, you cannot imagine this in dollars that you “lose”. You have to see the actual number of bitcoins you have and realize that this does not change. There is only a short -term price effect.
buy the dip and take profits with you
For others, the decline is only an opportunity to buy more Bitcoin. Lea Thompson, the founder of Girl Gone Crypto, is one of the dealers who used the decline to increase their BTC positions. She noticed:
I am really invested in projects that I believe that they will be worth much more in the long term than they are currently. […] But if something is really valuable in the long run, these market burglaries are more of an opportunity to collect more than something really scary.
Thank you for taking me in https://t.co/n5rzxb9fhr
- Girls gone crypto (@girlgone_crypto) 2. February 2022
The current slump has led to many retailers lost their entire portfolio because they were liquidated from their lit positions. Rodgers was such a trader, and his advice to other traders is: do not enter into a lit positions unless you are absolutely sure what you are doing.
"I think every experienced trader will tell you that you will prepare for a challenging time if you don't really know what you are doing," he told Time.
The leverage is great when the market increases, but if there is a sudden downturn, they can be liquidated. This is something that I have experienced personally, and although it was not a devastating loss, help them to minimize risks.
And of course retailers always have to remember to take profits with them when the market goes through an upward phase. In this way you can cushion yourself if the market goes through a break -in.
Wendy O explained:
When the market is green and really well, you should have specific profit scenarios if you get in when you get out and all these things.
"There is no assurance"
When Bitcoin reached new highs at the end of 2021, many predicted that the new year would bring even better news for cryptocurrency. Alex Mashinsky, the CEO of the crypto loan Celsius Network, predicted that we would reach $ 160,000 this year, while others like the analysts of JPMorgan
Even if these numbers could be reached later a year, January was a hard month for cryptocurrency. According to Rodgers, this contradicts historical patterns. He indicated: Even if there was a big pump in January, the macroeconomics were simply not right to have such a run this year. It was relatively obvious that a certain Chop was imminent-not necessarily a 50 percent drawdown, but if we have this Chop, it is also common to see a 50 percent drawdown. So there was my head. LEA, who is simply known to her fans as a girl Gone Crypto, finally reminded the investors from the fact that there are no guarantees in crypto trading. "The fact is that at every investment there is never the certainty that it is always [going to be the case]. But if you understand the underlying principles why you believe in something, it will be much easier to ride these waves," she said.
Source: Crypto-news-flash.com
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