Plenty of people are panicking because of the current cryptocurrency price collapse. Those who have been around for more than a year will know this is a yearly occurrence. January has always been a troublesome month for all currencies for some reason. It is only a matter of time until things return to normal, though. Right now, things may look bleak, but there is no reason to despair just yet.
It is not fun to look at the cryptocurrency charts right now. That is unless you’re into different shades of the color red. Everything has dropped by close t0 20% or even more. This is mainly because the Bitcoin value has tanked significantly, as it tends to do now and then. We never had a major Bitcoin price correction after reaching $19,000. Personally, a drop to $9,000 would be more than warranted right now, but only time will tell how things evolve. For now, $11,500 seems to be the bottom.
Another Catastrophic January for Cryptocurrency Markets
With all coins going in the deep red it is evident an interesting situation is created. A lot of weak hands are panic selling as we speak. These are mainly the people who only go into cryptocurrency over the past six months. A lot of money entered the ecosystem, which will lead to even more violent crashes. It is the natural order of things, especially after the year we recently had. Even now, the total market cap is still 1,000% higher compared to January 2017. Putting things into perspective is of the utmost importance at all times.
As one would expect, some currencies take much more of a beating than others. XRP, Stellar, TRON, Qtum, and Raiblocks have all seen losses of over 25%. Even Bitcoin is down by 17.35%, although this lost value can be recovered in a matter of mere days. Whether or not any of the altcoins will bounce back, remains to be determined. Everything is linked to Bitcoin in one way or another, unfortunately. Rest assured we will see more blood in the water before this week is over.
For now, there is no reason to be overly concerned as a cryptocurrency holder. Things will pick up again and new all-time highs will be created soon enough. When that happens, all of the current bearish momentum will become all but forgotten. Hold on to whatever you own and simply be patient. It is easier said than done, but there is no reason to sell at a loss right now. Doing so will eventually mean you buy back in at a loss too, which is not the best course of action. Volatility on this scale is perfectly normal in the cryptocurrency industry. It’s not fun, but people will get used to it eventually.
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