Bitcoin and the crypto market have been acting rather bearish as of late. The world’s number one cryptocurrency by market cap has recently shed around $7,000 off its price, and as a result, the entire arena has lost about $100 million in value.
Bitcoin Keeps Falling, and People Are Concerned
Thus, everyone is beginning to get rather negative about where bitcoin and digital assets will go in the coming days. They are not sure if bitcoin will rise any further, and some believe there’s reason to worry.
One such person is David Yermack, a professor of finance at the New York University Stern School of Business. In a recent interview, he commented that there are no guarantees with bitcoin, and that nobody can predict if the currency will experience any further spikes:
The only thing I can expect for sure is volatility. From day one, this has been a risky investment for people… It’s a purely speculative asset. You should never invest in anything that you don’t understand.
Daniel Polotsky – the CEO of Coin Flip – has issued a similar warning, claiming that those interested in investing in bitcoin or any other digital currencies should do so only with a small amount of money that they’re willing to lose. He states:
Maybe there are opportunities to make money because it’s so volatile, but it can be rather addicting very quickly to start trading back and forth, and most of the people that do lose money… People should only invest what they’re willing to lose.
David Sacco – an economics professor at the University of New Haven – recently stated that all those individuals looking to potentially invest in bitcoin should do so only on a limited and disciplined basis. They should impose guidelines for themselves when it comes to buying and selling, and never do anything too outlandish if they want to remain financially stable:
You can get experience and not blow yourself up in the process.
For other industry experts, the recent dip has nothing major behind it, and is something we should be expecting. They claim this is just a case of short-term cryptocurrency holders cashing out portions of their assets and collecting some quick cash. Harry Alford – co-founder of Humble Ventures – explained:
I think today we saw some profit taking investors liquidating, but if you’re a bitcoin bull and you have a long-time preference, you know that corrections are normal… We’re going to see a lot of skepticism turn into curiosity.
Just Let It Sit for a While
Anjali Jariwala – a certified financial planner and the founder of Fit Advisors in Torrance, California – says that hodling one’s BTC is always a good idea:
Throw some money into it and kind of let it stay in there and season for a while. Just so you’re not making decisions every time there’s a fluctuation in price, which happens every few days.
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