Today has been a tough one for Bitcoin and the crypto markets in general. BTC price has sharply dropped from testing all time highs around $20,000 to trading in the range of $16,500. For those who have been invested in the crypto markets for a while, this is nothing new. For new money investors, this may be causing you a great deal of stress. Hopefully this article can help to explain the trillion dollar question, ‘why is Bitcoin selling off?’

While there are many factors and reasons for a Bitcoin sell-off, the most important thing to remember is that this is a volatile market. Beyond that, it is a normal function of a healthy market to correct after a large and sudden gain. Even worlds most heralded stock markets are prone to correcting in similar manners (The S&P 500 fell 30% as just a few months ago!).

Day trading can be difficult in any market, and the safest option for an investment that you believe in is to hold through the storm! In the midst of this BTC sell-off, most people don’t mention that Bitcoin is still up 20% over the past month, and is up 490% over the past 5 years. It’s not so much about timing the market, it’s about time spent in the market.

You may have seen the term HODL used often in crypto communities, and this is a wonderful summation of a similar notion. The origins of the term HODL actually stem from a Bitcoin chat forum in 2013:

In summation, BTC is liable to go up, down, or sideways on any given day. The important thing is to remember the power of Bitcoin’s blockchain technology, it’s proven peer to peer transfer capabilities, and it’s public ledger that embodies transparency. Those key facts combine beautifully with its ultimate finite supply of 21 million BTC tokens should inspire confidence to hold strong, and carry on.

An easy way to take the stress out of Bitcoin investing is to use fully secured exchanges and apps like Coinbase, Robinhood, and Gemini to setup recurring purchases. Buying over a period of time at many different prices is referred to as dollar cost averaging. With this set and forget method, you need just check in every few months to watch your wealth grow. Gemini is even offering $10 free when you sign up today!

Crypto Bull cannot be held responsible for any losses incurred in investments. The content of this site is not meant to be financial advice and is only opinion. Any transactions made in the space should be carefully approached and considered.