Whether hodling or holding your digital coins, you have to accept that the current cryptocurrency market is threatening.
Should you continue holding your Bitcoin? Well, it depends. If you have had your BTC for 2 years now, you might be safe since the digital coin has gained more than 5,000%. Keep in mind that Bitcoin was valued at $3,300 back in 2018.
Most cryptocurrencies have had high volatility in the past day. Bitcoin dropped by 30% and gained an equivalent rise. That has confused BTC investors since they do not know which move to make next. Should you buy, hold, or sell your virtual coins? Let us find out what professionals say.
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Zerodha CEO and Founder Nithin Kamath admitted that he does not have crypto exposure, but the investing rules remain the same. The executive advised traders to reduce crypto percentage exposure and avoid averaging down. That is where risks seem high to manage.
Kamath, through his tweets, declared that although the current market situation might tempt traders to average down. However, the probability that the strategy will not work is high.
Moreover, the CEO expressed his concerns about the leverage trading offered by most cryptocurrency exchanges.
BTC, the leading digital coin, plunged by 30% on Wednesday, hitting the $30,000 level. Two events might have led to the drastic drops in bitcoin value. A few weeks ago, Tesla CEO surprised BTC investors after declining to accept BTC transactions in the company’s car business. Things never settled in the BTC market since the remarks by Elon Musk. On Wednesday, China announced its clampdown on crypto exchanges. The country attacked Bitcoin and cryptocurrencies in general.
On early Thursday, BTC was trading at $39,620, after a $40,000 high.
The drop in bitcoin value has left most digital coins in the crypto market tumbling.
Experts say that there is nothing unique with the current BTC price fluctuations. Keep in mind that bitcoin has had ups and downs ever since. It is only that investors have been witnessing the crypto market flourishing over the past year. As of now, you can remain vigilant to see what the next few days have. However, it seems like the market has high buying pressure.