Written by konex on 29 May 2021
It’s been a rude awakening for investors who thought they could handle the volatility the cryptocurrency market is renowned for. It’s hard to stay positive when investors have bought near all-time high only to see their portfolio drop by over 50% in some cases.
On Wednesday 19th May, bitcoin dropped by over 30% which was its fourth-largest intraday decline on record. While BTC did bounce back rapidly with the price up 20% above USD $39,000, the mainstream media seemed determined to spread the FUD and misinformation in what many saw as a coordinated attack. This has kept prices down despite nothing really changing for the crypto currency itself. China for example did not ban Bitcoin, they only remind everyone about their policies, and Bitcoin mining rigs also use more green energy than the media has reported.
Still, that doesn’t stop articles being published about regulatory pressure, technical (analysis) pressure, how high-profile individuals’ think Bitcoin is domed, how institutional investors have sold their BTC and moved over to Gold, and how countries and businesses are looking to ban the cryptocurrency.
An example of how this pressure this has on the market can be seen in the recorded daily swings of 5% or more. In 2020 for example, there were 42 such instances of these swings. Even though we aren’t even half way through 2021, there have been 39 days of swings, and 14 of these days in May alone.
As a retail investor, it’s very difficult to keep focused on the reasons why they entered the market with all this FUD in the media, but this sentiment will pass, and bitcoin will be back threatening all times highs before too long. Keep calm and HODL.