For the past several days, Live Bitcoin News has reported on the fact that bitcoin has entered a freefall that has caused it to lose roughly half its value over the course of a few short weeks.
Maybe It’s Time to Buy Bitcoin
It’s a scary thought at first, but many analysts and professional traders are telling people that now is the time to get even more involved in the market.
At first glance, whenever economic strife hits us, the first instinct for most people is to run away and think about something else, and this attitude also applies to bitcoin. Simon Peters – an analyst with the cryptocurrency exchange e-Toro – states:
Previously seen as a possible safe haven in difficult times, investors now seem to be selling out of bitcoin to take back liquidity in case the coronavirus spreads even further. In a time of uncertainty, many investors might feel it is better to own cash or gold rather than more speculative crypto assets like bitcoin, while others might be looking to free up cash to invest in stocks if and when the situation starts to improve.
However, the idea of avoiding bitcoin altogether would probably be incorrect, and the asset’s considerably lowered price gives people a much bigger opportunity to buy. Further purchases will cause spikes in the industry and allow crypto to potentially move into mainstream status once and for all.
Charles Hayter of Crypto Compare states that bitcoin should be a target of investors considering it can be used to transfer value at speedier rates than traditional financial products. He explains:
Bitcoin is still novel, and it is great as a means of transferring value quickly person-to-person… Bitcoin is a completely free market.
The lowered price also appears to have attracted the intrigue of even the most unlikely investors. NSA whistleblower Edward Snowden – who presently makes his home in Russia – stated in a tweet following yesterday’s massive crypto slump:
This is the first time in a while where I’ve felt like buying bitcoin. That drop was too much panic and too little reason.
Daniel Wolfford – the former head of cybersecurity at Blockchains, LLC – explained in an interview that increased activity amongst whales is likely responsible for the sudden and heavy drop in bitcoin’s price. He says that whales tend to be very emotional, especially during hard times, which may have spurred heavy liquidation over the past few days, resulting in BTC’s $4,000+ price drop.
Don’t Give in to Fear
He also asserts that now is the time for users to overcome their potential fears and purchase more bitcoin units, stating:
When you say $1,000 or worse, I see $1,000 or better, as in cheaper, like it went on sale. I buy when people cry.