Bitcoin has been having a difficult few days resulting in significant corrections to the price. Understandably, many are unsure of why this is happening or what they should fully do. Hopefully, these pieces of information help ease your mind and decisions.
During the confirmation of U.S. Treasury Secretary Janet Yellen, she made statements of Bitcoins use in "illicit activities." However, one of my previous articles stated that the cryptocurrency market actually saw a decrease in criminal activity for 2020 compared to 2019.
Wednesday, BitMEX released a report that a possible "double-spend" had occurred. A double spend is a scenario in which an individual can spend the same Bitcoin more than once. This news caused fear among many investors resulting in mass google searching of "bitcoin and double-spend." Along with this mass searching, Bitcoin has seen a noticeable sell-off revolving around this idea.
Upon further investigation, there has been proven to be no double-spend. Furthermore, mainstream investment firms and institutional buyers continue on their path to acquire Bitcoin. Despite all of these headlines, not a single whale has changed its position or opinion of Bitcoin. Smart money continues to pile in, well new investors jump ship in fear of false headlines.
So, should you be worried? It depends on who you ask. Here are a few key pieces of information that have been left out by mainstream media.
- Many have argued that these headlines and news reports are nothing more than manipulation for the masses. Big names such as ARK, PayPal, Greyscale, and many more continue to increase their standings in both Bitcoin and other cryptocurrency assets.
- Along with this, Joe Bidens second-largest campaign donator is the CEO of FTX, a cryptocurrency platform. Understandably Joe Biden would most likely prefer not to cause issues with this relationship.
- Finally, during the bull market of 2017, Bitcoin saw more than 6+ major corrections of over 30%, only to continue upon its ascend to all-time highs.
Investing can be intimidating especially with volatility like Bitcoin. However, when looking at the bigger picture it is clear to see that these headlines and fears are nothing new. Bitcoin has continuously been attacked by mainstream media only to continue to prove these attacks as nothing more than false statements. As individuals sell in fear, large investors continue to buy but for even better prices.
My strategy during this time is to hold and to increase those holdings to the best of my abilities. Whatever your strategy or plans are during these times, I hope that you succeed. As always, thank you for reading. If you'd like more updates, tips, and random writings feel free to follow and check out the other articles.