Massive Drop In Cryptocurrencies

Bitcoin is the first and the most popular cryptocurrency introduced to humankind. Along with Bitcoin, today we have other popular cryptocurrencies like Ethereum and DogeCoin that have dropped massively in the last 48 hours. Bitcoin is trading at just Rs 28.5 lakh while Ethereum is trading at Rs 1.8 lakh on cryptocurrency platforms. DogeCoin price has fallen to Rs 21 while Shiba Inu coin dropped to Rs 0.000710(over 48%).

This peer-to-peer digital cash system is dramatically falling. Bitcoin helps us send and receive money over the internet securely and at a fraction of the cost compared to the traditional banking channel. On Wednesday, Bitcoin fell to a 3-1/2 month low after China banned financial payment institutions from providing cryptocurrency services. However, the Co-CEO of ZebPay, Avinash Shekhar says that the 40 per cent dip in the bitcoin price is normal in many volatile markets.

He further added that the falling prices may serve as a buying opportunity for the long-term value investors. “Technical analysts would call this a test of the support level around $40,000. Neither type of investor would say that tweets are the underlying cause. Investors should invest in education first. Research the underlying value of Bitcoin, Ethereum, and other crypto assets as you might look at a company’s information before buying stocks. Use strategies like rupee cost averaging and SIPs to more confidently manoeuvre through volatility and take a long-term view,” he added.

Whether to invest in Bitcoin in the future is unpredictable at the moment. It is a very high-risk asset. Hence, experts suggest that one should not risk important savings and emergency funds in cryptocurrencies. The flagship cryptocurrency fell to more than three-month lows, dropping to about $30,000 at one point for a pullback of more than 30% and continuing a week of selling in the crypto space.

Bitcoin investment is certainly good for those who have a vast personal disposable income. If you do not have any misery by losing it, then you can invest in bitcoin. This means it is good to invest in Bitcoin with any spare money you have floating around that you can lose and not worry about it. In the middle of the bitcoin drop, Elon Musk tweeted “Tesla has” with diamond and hands emoticons. Tesla has “diamond hands” which implies the company would not be parting with its $1.5 billion stakes in bitcoin. “Diamond hands” is a reference to “traders who believe in the eventual profitability of their stocks and securities and keep holding them while their value drops.”