I've noticed a lot of folks freaking out over the recent Bitcoin price drop. A friend of mine even posted something like "Bitcoin is done for" and called it "the end" just because the price fell from $126,000 to $95,500. But come on, this isn't the first rodeo for Bitcoin. It’s always been like this, pumping hard for a bit then crashing just as hard, only to settle down again.
So, what’s causing this Bitcoin drop?
- Market liquidity is feeling tight right now. When money’s not flowing freely, crypto usually takes the hit first.
- Investor sentiment changes on a dime. A little bad news or regulatory chatter and people panic, which leads to a sell-off once fear sets in.
- Regulatory news and global happenings can really shake up confidence in the market.
- Bitcoin is still a pretty young asset. These ups and downs are just part of its growth.
Similar situations have happened before:
- Back in 2017-2018, Bitcoin soared to $19k and then plummeted over 80%. Everyone was saying Bitcoin was dead, but look where we are now.
- In 2013-2014, regulatory issues and exchange troubles caused another drop.
- And let’s not forget 2011, when there was a huge crash too.
In all these major drops, each time after the initial panic subsided, Bitcoin came back stronger.
Why You Shouldn’t Worry About Bitcoin’s Price Swings
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You want to know how to actually feel encouraged? Practise DCA. You will actually see what it means to be accumulating at low prices. You'll then feel like you have more coins, for the same dollars. And that joy only grows, as Bitcoin in its new cycle wanes, and then waxes, as the coins you bought 6 months ago, a year ago, 2, 3 years ago, all are worth much more dollars than you bought them for.
So never mind about the big idea talk. Keep it simple. Stack those sats.
51gma_forkFull Member
Posts: 97 · Reputation: 658
#3Nov 10, 2020, 07:48 AM
We're in 2025 and yet we still discuss about fluctuation/volatility, really?
It's not something need to be discuss anymore because it's crystal clear if you want your wealth to grow, then you have to choose asset with fluctuation. Since Bitcoin price is getting higher, I'm also sure the fluctuation would be less compared to other previous 4 seasons cycle.
$95K is still big, the dump is nothing, it's a normal days in Bitcoin.
But if the bull run has ended and bitcoin goes back into its usual bear market cycle it may not recover again for months
or years. You could be holding onto losses for a long time. So I would be careful. You don't want to buying bitcoin at the end
of the bull run just before it crashes which it appears to be doing now.
The stock market is grossly overvalued due to the crazy AI bubble, and bitcoin is closely correlated to the stock market,
Meaning it is widely considered a speculative asset by most rather than a safe haven like gold. So people tend to dump it
when there are signs of trouble. So if or when the US stock market collapses it will surely take bitcoin down with it.
Yes, like I always tell my fellow investors, the little sats worth it, the little consistent increase in purchasing of sats overtime is very significant and can cause great result too as well. That is the only encouragement I can boldly tell OP if he actually mean to be successful in the crypto industry space.
Not everyone has the same reaction when responding to a Bitcoin price decline, some seem calmer because they are confident that this is just a temporary situation and the price of Bitcoin will continue to rise in the future, but there are also those who overreact like your friend.
therefore it's important to remember that emotional reactions can have a big impact on investment decisions, and your knowledge of the market is necessary so that you can remain calm and not make rash decisions when facing volatility. because for those who still understand the situation as it is now, they will not be rash in making decisions, and they prefer to remain calm and not rush to sell their assets which will help them minimize unnecessary losses.
Bitcoin is a volatile asset by nature, and it price always fluctuate dramatically, so there is no need to panic provided you are investing in bitcoin for long term, although this recent dip has raised a lot of questions, and if we check deep down we are going to discover that this questions are mostly asked by newbies, who are just getting started with bitcoin, although there are some person's who don't really understand how Bitcoin work that's why you see them panicking, due to the recent dip, since the Bitcoin market has not yet recover from the dip, rather it's Still diping the more, and presently Bitcoin is around 94,904.5 as at the time am making this comment, but all I can say here is that, those who are holding Bitcoin should keep holding buy this dip and hold, Because Bitcoin market will still recover it's just the matter of time.
SilentVectorFull Member
Posts: 50 · Reputation: 362
#8Nov 12, 2020, 08:37 PM
Why are you surprised? you should also be used to threads like this twords the bearsih times because it's one of the major characteristics of we beginners, I remember how I used to encourage others meanwhile I was the one who needed the words of encouragement so I guess that's the phase op is in bitcoin right now, however bitcoin volatile nature is something we consider normal now and even enjoy it than panic and call it a new name "opportunity" for discount buying so learning why I should stay encouraged op is like going back to what we already know.
alpha_ravenMember
Posts: 48 · Reputation: 170
#9Nov 12, 2020, 11:53 PM
The word volatile related to trading but people has been using it to relate to Bitcoin since the price of Bitcoin is volatile. The volatility is what makes Bitcoin move to any of the up or down direct at a time. Even if Bitcoin goes down, it will not take too long for the price to go and that is how it has been moving causing investors to make money and those that are trapped will lose money maybe they are not smart and good enough to be investors. When the volatile market is gone making profit will be hard.
coin_sigmaLegendary
Posts: 1275 · Reputation: 5553
#10Nov 13, 2020, 03:09 AM
Well, if we use the old cycle alone, I can say that these are normal price declines. Since the old cycle is always happening, there has always been a bearish season. Same as before, we should wait for near block halving, but I know those people who know the cycle will buy early once they spot a much cheaper price.
Honestly, $95k is still high. I am more expecting to see below $95k, but I believe that BTC will retrace and retest the $100k zone. If it fails, then expect to see bearish breaks at the $95k level to form a new lower low.
For now we should accept the fact, but anytime BTC can change since we have big institutions, big players or whales, and news; they can sometimes have a big impact nowadays.
That's why doing DCA is a good strategy to spot the dip.
As time goes by, the bitcoin price moves to more stability caused by spread use and more adoption by official bodies.it's true that people don't realize yet that volatility is what really makes the bitcoin a great investment. And that what differentiate bitcoin investment from other types of investments called secure (gold,real estate...) is this volatility until the volatility will reduce after the wide adoption will take place.
At this point, I'm now enjoying the ride. The price could go lower. Make my day! It won't bother me. If I were a newbie, this might trouble me. But I've been there, done that. I don't even care speculating what contributes to it anymore. Another ATH is on its way, anyway.
People should instead treat this as an early Black Friday sale. Especially to those who are afraid they're buying at the top, here's your opportunity.
Seriously, after reaching this far, and at $95,000, there's still a fool who thinks "Bitcoin is finished", "this is the end"? Grow some balls! How softer could you be?
Bitcoin market is volatile but there are times for fluctuations with not too big price changes. Times with price fluctuations are most boring times in the market as lacking of big volatility for entries and exits with either spot or leveraged trading positions.
With investors who follow long term accumulation with for example DCA strategy, they don't mind about price changes either big or small, high volatility or fluctuation, they simply prepare money and use part of their discretionary income for accumulating bitcoins with time.
To understand about Bitcoin market, don't only try to learn about fluctuations, but learn something bigger such as The Psychology of market cycles. Understand psychological cycle can help people prepare their mindset, positions, and mentatity better against most wildest volatile times in the market.
Bitcoin's holder cheat sheet.
The psychology of market cycles.
More to understand in times like this, we are not to panic in fear because the market is falling all of a sudden, don't react or overacted towards the same pattern in which the market is going, because you're dealing with bitcoin the most consideredand consistent digital crypto, lastly, let me leave you by saying this, always hold each time the market falls, because it will rise anytime soon.
Bitcoin is a highly volatile asset that is subjected to rise and fall and as such those of us that already understand that price fluctuation is a unique tradition of Bitcoin don't need to panic when the price crash because it's not the first time we are experiencing dip in the process. However, we all know that the price will surely rise with time so instead of panicking I think we should consider the dip as an avenue to maximize our Bitcoin asset by leveraging the opportunity of the dip to buy and accumulate more starch of Bitcoin and hold it for longer term in order to make good return when the price will rise.
CyberTokenSenior Member
Posts: 146 · Reputation: 912
#16Nov 17, 2020, 01:57 AM
Why is bitcoin dropping? I'll give you my opinion.
It's all manipulation by the US and China.
We were doing good, bitcoin was rising steadily with no end of the rally in sight. We had only 2 large selloffs and guess what did they coincide with - Trump's tariffs!
He started talking about it in February and promised to imposed them from early March and then in March he added new ones that included Canada and Mexico. Bitcoin dumped from 105k to 74k in 2 months.
On October 10 he announced 100% tariffs on China. Bitcoin dumped from 122k to 109k.
Then we had a small recovery towards 116k, but then came out Powell and said he may not cut rates in December. On that day October 28-29 bitcoin fell from 116k to 108k
In response someone sold a lot of BTC on a Chinese exchange, most likely an insider.
This week while bitcoin held 100k China accused the US of stealing bitcoin and we dumped to the 90s.
IMO the US government is doing its best to stop bitcoin from rallying.
Don't let them force you into submission. You do what's best for you and ignore the noise!
100% agree.
BTC is now strongly overvalued relative to its fundamental (acceptance rate).
If BTC price with 100% acceptance rate could be 1 million usd (like the gold) and BTC acceptance rate is now near 1%, what is the fundamental value of BTC now?
I totally agree with you OP and honestly it feels like some people have amnesia or they just haven't been in crypto long enough
Every single bull market has these huge crashes and the fear is always the exact same everyone thinks this time is different that Bitcoin is finished but then it always comes back even stronger
You hit the nail on the head volatility is normal it's part of the deal and honestly it's what makes the big gains possible if Bitcoin moved like a slow stock we wouldn't see the kind of returns we've had
Buwaytress and Josefjix mentioned DCA and that is the real secret sauce if you are buying a little bit regularly the dips don't scare you they become an opportunity you're buying more sats for the same money that's a win right there
The truth is if you are a long term holder this $126K to $95K drop is just noise and a discount
We know the fundamentals are strong we know the adoption keeps growing and we know the cycle repeats so instead of panicking stack your sats and enjoy the ride till the next ATH because it is definitely coming
People who sell now are the ones who buy back higher later don't be that guy just zoom out and chill 😎
This kind of dip is to be expected though and I really agree with the fact that liquidity is tightening but on top of that the support has been tested so many times and it's good enough that we're still seeing recoveries.
We need to remember that bitcoin has been hitting ATH many times, in hard time like this some people gonna take profit and that could cause the price to be corrected a little from ATH.
Can't expect the price to stay at ATH forever because the market always have volatility and price goes up and down. We've been having a good time until now and now it's time to accumulate again.
One thing I want to say is to have long term vision and HOLD hard.
You see for the most part newbies look at their Bitcoin HODL'ings in terms
of FIAT value so when the market drops they see their FIAT dropping too and
fail to look at the bigger picture or worse dont even understand:
1BTC = 1BTC - whether in a bull or bear market
The Bitcoin market moves in cycles and with a long term outlook your 'investment'
is safe and will be in the Green.
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