Oh man, I can't wait for us to get out of the bear season so crypto can put on a good image as it did early January this year. But you know what, forget about me, this blog ain't about me complaining about crypto prices and Trump's tarrifs, it's more about wondering how the newbies in crypto trading and investments are doing right now.
Yeah, they're not doing so good. Their first experience with crypto investments and it's a huge dip season.
Bitcoin had it's all time high after Trump won the U.S. election. That's not the only thing that happened though, it also had so many new investors jumping in at that high price.
It hit a record of $109,000 in January and now it's hovering around the $80,000 level. To anyone that invested in Bitcoin years ago, this is still a very good value, infact it's a value that we couldn't even imagine happening this early but to anyone that bought it when it was at 100K, they are in a huge loss.
Based on sources online there was a bit over 20 million new Bitcoin addresses created in the last three months, but a lot of these newcomers are selling at a loss. Of course a veteran Bitcoin investor would say hold the token but for some people life can turn so rough they'll have little to no choice than to sell.
Another sad thing is that, a lot of the new investors didn't buy out of smart financial decisions, they were excited and FOMO caused them to invest, so they didn't invest what they could afford to lose or Hodl.
You should always invest money you can afford to Hodl otherwise uncertainty in life can cause you to sell at a loss.
Some of the newbies even borrowed money to invest. That should let you know how desperate they were about making it big with Bitcoin.
Some of the crypto expert traders and experienced investors have said that the value of Bitcoin could still drop further down. As low as 73K.
Trump made an executive order in America to create a Bitcoin reserve, I thought that news would create the biggest pump ever and perhaps pump Bitcoin to the new unofficial vision mark of $200,000 but it didn't happen and not much pump happened for the token.
Crypto ETFs and investment funds have been losing money for four weeks straight and some investors have been pulling out billions. The price swings is getting more intense though so the volatility will be higher in the near future. Of course it's not all bad news because it could also be volatility in the green candle point of view.
There are people that think that this crash of Bitcoin is temporary, like what happened in 2018 before prices shot up again. Others say bitcoin is still tied to the overall stock market, so if stocks keep dropping, bitcoin might too.
Anyways, it's not the end of the ride, it's just a season, the bear season. But look at it from the perspective of a crypto being worth above $70,000 and almost stabilizing above that point. This is a good glass half full way to look at it, just incase you're in despair.