There is FUD (Fear, Doubt, and Uncertainty) spreading about the dip in the price of Bitcoin and the lesser coins called Altcoins. FUD is toxic. FUD can make you run without thinking why you are running.
OK, the price of Bitcoin and Altcoins are down! Does that mean that cryptocurrency is a passing fad as many would like to think is? No!
There are always reasons why things happen. It is fully understandable why the informed gives in to FUD.
Why has Bitcoin and the other Altcoins been down in price?
What we are seeing is simply crypto-market volatility coupled with recent and cyclic news events in the world that impact the dip in prices.
These are …
- FUD that South Korea will come down on cryptocurrency exchanges.
- It is the Chinese Lunar New Year and Chinese are cashing out some of their cryptocurrency gains, and …
- It is tax time in the United States. Many are selling off some of their profits to pay their taxes.
Note: And there are some things happening in Bitcoin futures that impact the price dips as well.
Learning about cryptocurrency involves this kind of research so that one is able to articulate what is going on. If you compare the Bitcoin chart today with the one this time last year, their shapes are nearly identical for the month of January. Bitcoin is down and so are many of the Altcoins. Then come mid-February the price goes up and continued upward.
Let’s look at the chart history for Bitcoin for 2015 to 2018.
So there are annual cycles that must be studied. Understanding those cycles and when they occur and what causes them to occur makes you a powerful, wiser, and informed cryptocurrency investor.
If you invest, invest what you can afford to lose. And … diversify.