The crypto market has now declined to one of its lowest points in two years as bitcoin and others have fallen, and this has struck fear in the hearts of investors. Due to investors being too scared to put any money in the market, the prices of the digital assets such as Bitcoin continue to fall. As the chart bleeds red, there are no doubt numerous things that are going through the minds of investors right now. But one question trumps others; is it time to buy the blood in bitcoin?
Buying The Blood In Bitcoin
Currently, the price of bitcoin is sitting slightly above the $24,000 point. This is the lowest that the digital asset has been in almost two years. For some, this has caused them to lose a significant portion of their portfolio when it comes to dollar value. While for others, this has proven to be a buy point for them. Additionally, a lot of investors operate with historical data, such as what occurred when the price of the digital asset had fallen.
Related Reading | Shock And Awe: Bitcoin Lightning Network Capacity Reaches New ATH
Investors have found themselves, numerous times, making a lot of money from markets like these when the price of the digital asset was far down in the red. This is what is referred to as ‘buying the blood’, purchasing the digital asset when it maintains a stretch of red.
However, it is not always rosy for investors who choose to toe this path. This is because when it comes to a bear market, there is no telling how far the value of a digital asset will fall. This was the case at the onset of the last bull market when a dive to $14,000 had triggered calls for buying the blood. But as everyone would later come to see, the price would decline as low as $6,000.
BTC 24-hour decline sparks fear in investors | Source: BTCUSD on TradingView.com
In the end, it comes down to individual investors and their risk tolerance. There remains every possibility for more losses at this point. Nevertheless, recovery from this point would see a lot of investors making good profit in a short period of time.
BTC Crash Trending
The crash that the market awoke to on Monday is one for the books. Although the digital asset had been trending quite low for the better part of the weekend, nothing could have prepared the market for the dip to $24,000. In light of this, users in the space have taken to social media to express their hopes, fears, and frustrations with the current market.
Related Reading | Jim Cramer Says You Shouldn’t Borrow Money To Buy Bitcoin, Here’s Why
The crypto market has also lost more than $100 billion of its market cap in the last 24 hours alone. This has now put it at points not seen since February of 2021. It has in turn led to more sell-offs as investors flee the market for the relative safety of fiat currencies.
It is unsure where the market is headed or if a bottom will be reached soon. What is clear is the fact that the bear market is in full bloom. If previous bear markets are anything to go by, then crypto investors could see themselves underwater for the next two years.
Featured image from CNBC, chart from TradingView.com
Disclaimer: The following op-ed represents the views of the author, and may not necessarily reflect the views of Bitcoinist. Bitcoinist is an advocate of creative and financial freedom alike.
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…
Credit: Source link