The cryptography world is in shambles. Bitcoin holders are unconcerned by the market’s current state and are continuing to acquire DCAs, but investors who do not plan to retain their coins for the long term are freaking out. In the last quarter, when the cryptocurrency market dropped almost 60% of its value, many traders lost everything since they had leveraged their bullish bets with borrowed funds.
No one who bought Bitcoin this past winter, when it hit a new high, should sell now. No other option exists if you are experiencing financial difficulties and urgently require cash. However, selling your BTC holdings at this time is not a good idea unless you absolutely need the cash.
According to Charles Armstrong, CEO of Coinbase, many exchanges do not anticipate a reversal of trend within the next 18 months, as indicated by his recent interview on CNBC. These businesses are bracing themselves for what may be a very lengthy and taxing crypto winter that significantly lowers the prospective earnings of any crypto enthusiasts or BTC hodlers.
Experts agree that Bitcoin’s value is unlikely to drop by more than 20% from its current level, so you may safely hold your coins (assuming your positions are not leveraged) and sell them in two years when the market has recovered. Even though it’s not the best option, recouping the money you lost as a result of the overall economic downturn is still possible.
Given the current economic climate and the scarcity of investing options, selling all of your crypto holdings to diversify into other areas would be a risky strategy. Right now, we do not have any solid options for where to put our money. Compared to crypto giants like BTC and ETH, it does not appear that real estate, gold, or other traditional securities will be more efficient or secure.
If you’ve been holding onto coins, now is the absolute worst time to sell them; brace yourself for a very bumpy ride. You’ll be living with hodlers for at least two years, whether you like it or not.