Bitcoin's price fell to $50.000 on Thursday, triggering liquidations of more than $1.000 billion and panic among younger investors, who are selling their holdings while experts recommend against selling.
The volatility of Bitcoin (BTC) is surprising everyone this week, especially this Thursday, when the price of the cryptocurrency took an unexpected turn and fell to $50.000 after reaching an all-time high of $61.711 just a week ago.
With a drop of more than 15%, Bitcoin's arrival at the $50.600 level caused the liquidation of $1.070 billion this Thursday, according to data showing ByBtBitcoin liquidations on Thursday caused panic among investors who were betting on the upside, when the market went in the opposite direction with a drop of more than $11.100 per unit.
Source: ByBt.
This drop is leading new cryptocurrency investors, who have little experience in this market, to sell their BTC holdings. However, professional investors with extensive experience in Bitcoin and cryptocurrency investing recommend not selling.
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A call for calm
On his Twitter account, Willy Woo Woo calls on investors not to sell their bitcoins, but rather to hold on to their holdings for the long term. Woo calls out “cray cray” to all investors who are selling their BTC, indicating that the market is showing what can be interpreted as bullish signals.
The BTC investment specialist indicates that there is possibly an institutional buyer that has not yet been announced, and that many coins are moving “to strong hands with minimal sales history.”
On the other hand, Bitcoin's current performance seems to follow a pattern, according to several experts, who point out that in the days following multi-million dollar liquidations such as the one that will occur today, when $6.000 billion in options expire, the market has grown significantly. FTX CEO Sam Bankman-Fried agrees with this assessment, pointing out that the liquidation of $6.000 billion in options will undoubtedly move the spot market.
Also, the number of BTC deposited on exchanges is decreasing, which analysts interpret as a bullish sign, considering that more companies and investors are HODLing, and that the supply of the cryptocurrency is decreasing on crypto exchanges, so the price of BTC may tend to rise again.
$100.000 this year
Despite the recent drop in value, this first quarter of 2021 is shaping up to be one of the best for Bitcoin in recent years. The cryptocurrency's performance since the beginning of the year until the time of this note is between 75% and 110%, considering the current value of the cryptocurrency, or its historical maximum price on March 13.
Market experts point out that BTC's performance will continue throughout this year, and that the recent drop is part of the natural process of the market, which cannot grow in a straight line. Corrections are a fundamental and important part of the revaluation of the cryptocurrency.
To Jordan Belfort, consultant and former Wall Street stockbroker, Bitcoin may hit $100.000 per unit by the end of this year. Belfort, who had a negative view on Bitcoin, said he was wrong about the cryptocurrency during a interview in Fortune. The investment expert no longer believes that the cryptocurrency will collapse, as he claimed years ago, but that it will continue to appreciate exponentially.
A bullish sentiment shared by the crypto community
On the other hand, a survey applied on Twitter by the well-known Bitcoin fan, PLANBE, revealed that nearly 84% of the community believes that Bitcoin will continue to rise this year, and that the cryptocurrency will reach a value between $100.000 and $500.000.
40% of the online survey participants say that Bitcoin will reach $100.000 by the end of 2021, while 33,2% think it will exceed $280.000; 10,7% say it will reach $500.000 per unit, while only 16,1% think the cryptocurrency will not exceed $100.000.
Nearly 50.000 people participated in the survey conducted by PlanB, which shows that there is a great bullish sentiment in the crypto community.
The power of HODL
Bank of America, one of the largest banking institutions in the United States, recognized the power of applying the HODL strategy, of keeping an investment asset saved for the long term. According to the report As presented by the bank, HODLing S&P 500 assets since 1930 would have yielded gains of more than 17.700%.
“Staying invested during turbulent times can help recover losses after bear markets.”
HODL is the well-known strategy in the cryptocurrency world, which started with Bitcoin, and the call that experienced Bitcoin investors make today. At the time of writing, the price of Bitcoin is hovering around $52.240, growing by around 2% in the last few hours.
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