At time of writing, Bitcoin had fallen almost 20% in seven days, taking it to around $31,400, according to CoinGecko data.
There are a few factors pushing Bitcoin’s price down, but they can be summed up in one word: uncertainty.
So, what’s behind the uncertainty? First, sky-high inflation and the measures central banks are using to bring it under control.
The recent hike is likely to be the first of several such jumps, and some fear a so-called “soft landing” will not be possible.
Still, these dramatic drops are hard for investors to stomach, especially those who bought Bitcoin for the first time last year.
However, if you sell now you will lock in any losses and you won’t be in a position to benefit from any subsequent rallies.
In fact, you’ve probably used this company’s technology in the past few days, even if you’ve never had an account or even heard of the company before.
Analysts predict that Bitcoin could continue to fall in the coming days, with some traders eyeing a bottom at $28,000.
They are often made by traders who attempt to profit by identifying trends in price charts, and none of them have a crystal ball.
If you zoom out and look at Bitcoin’s price action across the last five or 10 years, you’ll see it has always gone on to recover and reach new highs.
Perhaps you think it could be the digital currency of the future, or you believe blockchain has the potential to transform our financial services.
The trouble is that fear often leads us to buy high and sell low, which flies in the face of investing logic.
The cryptocurrency apps that landed on our shortlist include perks such as $0 commissions, and one pick that is offering a $100 bitcoin bonus.
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