Bitcoin fell more than $2,380 to the area of $43,000, causing a series of other cryptocurrencies to fall deeply, causing the entire market capitalization to lose hundreds of billions of dollars. Fear pervades the entire Crypto market. So what should investors do at this time?
Bitcoin price closed to $42,500 as interest rate hike expectations weighed on several assets.
Early in the Asian session on January 6, the price of the world’s largest cryptocurrency by market capitalization fell to $42,505 – the lowest since early December 2021. Before that, Bitcoin had been up about 500% since the end of 2019 thanks to the easing policies introduced to ease the impact of Covid-19.
Other cryptocurrencies also fell. Ethereum, second by market value, and BNB, the currency of Binance, hit their lowest levels since October. Coins of popular decentralized finance (DeFi) platforms including Uniswap and Aave were no exception.
Data from CoinMarketCap shows that the amount of Bitcoin traded during this period was about 36.6 billion USD, the market capitalization recorded at 823 billion USD.
On Vicuta, the leading cryptocurrency price traded at 1,004 – 1.0522 billion VND (buying price – selling price).
Bitcoin has been volatile lately. After setting a record of 69,000 USD on December 4, 2021, it plummeted very quickly, at one point reaching 42,000 USD.
Many experts in the field of cryptocurrency believe that Bitcoin will face many risks in the near future. Accordingly, Jesse Powell, CEO of Kraken exchange, thinks that the Bitcoin price can drop significantly in 2022. Even, it is not excluded that the Bitcoin price will drop below the threshold of $ 40,000/coin this winter.
In addition, Bitcoin’s market share is decreasing as the digital currency market grows. Many investors are looking to smaller cryptocurrencies in the hope of larger returns.
However, despite the volatility, many experts believe that Bitcoin is well on its way to surpassing the $100,000 mark.
Returning to market movements, many large-cap cryptocurrencies fell along with Bitcoin. Specifically, Ethereum is down 6.4%, Binance Coin is down 6.3%, Solana is down 7.6%, Cardano is down 5.9%, Terra is down 7.2%, Polkadot is down 7.1%…
Total market capitalization is recorded at $2.090 billion, $120 billion down.
What should investors do?
Keep calm, don’t sell off
In the face of market panic, many people will rush to sell their coins. For investors who hold coins for a long time, keep yourself calm, not in a hurry, think that every market has ups and downs. Only when the boat is light is it the right time to set sail.
Observe the market
On the morning of January 6, the market had a slight recovery to $43,600. But that was not enough to make the market better. The current buying power is very low due to the fear of old investors and new investors thinking that this is not the time to enter the market. So this is a very unpredictable period. What you need to do is choose for yourself good coins, foundation coins to be ready to buy at a good price. When the market recovers, they will be very fast-growing coins.
Don’t take risks
Catching a falling knife is never a good idea. Fear of losing an opportunity will lead us to make incorrect decisions. Thinking that yesterday’s price was $47,000 but today’s price is $43,000 and we’ve already bought it $4000 cheaper is completely wrong, as the market could fall even more. Choosing for yourself good entry support points is the key to success or failure, only when we have a good position can we confidently trade. So how to determine a good position? Check out the technical and market analysis for reference.
In short, people right now feel panic and fear, they’re afraid that Bitcoin will crash and drop dramatically. Let’s get rid of that thought and think positively that when Bitcoin drops, we have a good chance to buy this coin cheaply. Stay calm and keep yourself ready.