On Friday, a large number of crypto fans took to social media to express their dissatisfaction with the current status of the market. Imyourkingg, a Reddit user, said to have put 30% of his net worth into Bitcoin (BTC) a few months ago, stating:
“For the next 5 to 10 years, I don’t need this money. However, I must confess that I am occasionally terrified about Bitcoin’s future. I mean, it either crashes or it never reaches $100k, $200k, or at least $55k again, as predicted for 2025+. And I lose that money, especially when my friends, mother, and relatives accuse me of being insane for investing it.”
Because cryptocurrency is decentralised, it lacks circuit breakers like those found on traditional stock markets. The resulting bull/bear cycles can be dramatic, making them difficult to adjust to for the inexperienced. With a post titled “$60k and panicked:
“Ok, so I’m new to crypto and was a thanksgiving meal victim, but I need some advice on whether I should sell or hold. Guys, I’m going to HODL [Hold on for Dear Life], but I can’t afford to buy a whole lot more rn.”
Bitcoin’s price has dropped 11.4% in the last 24 hours, and is down 44.7% from its all-time highs of almost $68,000 in November 2021. Early Bitcoin investors may be sitting on relative fortunes, putting them better positioned to weather these storms. However, this is not true for newcomers to the market. According to Huobi Group’s study, 70% of current crypto holders in the United States began investing in crypto in 2021.