Fear Due to Price Drop

[Dzwaafu11]

Why do people sell their Bitcoin due to fear of the  current drop in price. Do They feel the price will drop further and never go up again ?

Some people are not ready to hold bitcoin for a long time, some people don’t have the mindset to keep looking their money while the price is falling and their money is reducing although I feel like this people don’t really want to take the risk in bitcoin investment that is why they prefer to sell even at lost because they think the price will not fall back.

I feel before anyone invests on Bitcoin they should get a proper understanding of how the Bitcoin market operates. Because if an individual has good understanding they will know that the rise and fall in price of Bitcoin is normal so there won't be a need to panic rather see it as an opportunity to accumulate as much as possible in anticipation for a rise in price.

Some people you see they re selling is not because they don’t know what the market movement look like, it the fact that they are not ready to invest for a long time, and instead they should wait till the price increase again, they prefer to sell because they are already panicking thinking that it will not climb back which is wrong.

However, many of this investors are newbie investors, obviously any investor who already in the game for a long time now, will know that this is just a normal thinking in the market movement. But newbies always eager to make money from the market, they forget that isn’t a get rich quick scheme.

[Olatundespo]

not everyone who is bitcoin investor that panic when the price of Bitcoin is going down, the thing is that most of the people that panic to sell when the price of Bitcoin decreasees, is the people who new in bitcoins investment, because someone who is new in bitcoins investment will definitely be afraid of the downfall of Bitcoin, but someone who has witnessed different falling of Bitcoin will not panic to sell bitcoin when the price drops in the market

Because it has been mastered by regular falling of Bitcoin price, if I'm not mistaken, I know very well that bitcoin price is something we need to understand that it never be a constant something, it always decreasees and also increases in price.

Exactly not all people who invest in Bitcoin get worried when  price goes down especially those who believe in Bitcoin and long term holder. Usually new investors who quickly sell their Bitcoin when price drops. This happens because they are still learning about ups and downs of cryptocurrency market. Experienced investors however have seen price drop before and stay calm. They know that Bitcoin price always goes up and down so they are ready for it. Investors need to understand this and get used to it. If they do, they can make better decisions and avoid selling quickly when price drops.

When the price of Bitcoin drops, those who are short term traders want to profit from holding. Smart investors consider the price drop as an event and continue to buy aggressively. You should especially hold on to your Bitcoin holdings during price fluctuations. The correction period may be present to you for a very short period of time. A long term investment plan keeps you stress free if you accumulate Bitcoin from a prudent perspective.
Bitcoin investors should be ambitious because they are investing in the best currency and are responsible for focusing on its growth. Prepare for future financial independence and fight inflation. I consider the price drop as the best event and an opportunity to buy from floating cash funds.

[Rockstarguy]

As much as I believe in the potential of Bitcoin, today I feel that it has lost its original purpose. It has become an object of mass speculation only, not everyone is prepared for this type of volatility; in 30 days, Bitcoin has depreciated by 8.3%, which for many is a considerable loss. I don't judge those who are overcome by fear when the price drops!

It is expected those who are unprepared will buy bitcoin to invest in a short time that they can to make some profit. Bitcoin can never ge predicted no matter how you think you are so familiar with market. 

Bitcoin be on predicted and volatile is what people needs to put at the back of their mind,  this will bring no room for speculations and be prepared to invest. When their is no expectation of the price of bitcoin in the market,  whatever may be the condition of the market , it won't make one to be panic to sell because already one has made up the mind to invest and this is a decision well taken.

[Lucius]

I don't know how long you've known about BTC or been investing in it, but volatility has always been an integral part, whether anyone likes it or not. Not so long ago, the price lost about 50% in just one day (the declaration of a pandemic), and in all 15 years there were a lot of dramatic ups and downs, so I don't consider an 8% drop in 30 days to be something that should make anyone feel like they have a significant loss, especially if they didn't sell.

Besides, have you been following the news these days? World stock markets are in the red, and even gold has lost about 1.6% in the last week. I personally thought that after the US announced a global trade war, the price of BTC would drop below $80k, but that hasn't happened (yet).

This just shows that a large percentage of investors still have great confidence in BTC, which is really great news for an asset that is not part of a centralized financial system, at least not in the literal sense.

I understand and agree with you. I have been familiar with Bitcoin and cryptocurrencies, as well as the stock market, for a long time. Likewise, I am not an expert, but I read a lot about it and I also invest.

Imagine Bitcoin at $90,000 minus 8.3%, my loss will be approximately $7,470. If I convert it to the local currency (Brazil), the “lost” amount will be R$43,624.80 or two years of salary (considering the monthly minimum wage here, which is approximately $260). So, yes, for many people here, it is a very high amount, and not everyone is prepared for this loss.

Cryptocurrencies have attracted people of all types, from strong investors to small investors, curious, people with no technical knowledge, who have simply heard that it is the “investment of the future”, but deep down, they don’t even know how it works.

There were people who sold their houses and cars just to buy bitcoin and suffered the 50% loss you mentioned. Many are no longer here to see that bitcoin has recovered, unfortunately they let themselves be carried away by despair.

I understand what you're talking about, I believe that moments like this and similar ones are not easy for anyone, no matter how long they've been in all this and no matter how much or little BTC they own. It might be a little easier if you invest money that you can set aside without it directly affecting your daily life, but in the extreme cases you mention, moments like this can be extremely stressful.

However, anyone who invests in BTC should know that a drop in price does not necessarily mean a loss, but only a potential loss that will not be realized unless we actually sell. Therefore, we need to learn to control our emotions and not make hasty moves, because instead of selling and thus being at a loss, why not use it to our advantage and buy cheap?

Because of things like this, I will always say that BTC is a great investment, but only for those who understand how volatile it can be - otherwise people should choose other things that won't make them too much money, but also won't cause them too much stress.

[CryptSafe]

How can someone even do such a thing by going to get a mortgage with their houses or other acquired properties for this purpose? That doesn't sound well at all. This is something you are not even 100% sure that would payback and going as far as getting a loan or selling off already acquired properties to invest is something anyone shouldn't think of doing at all.

And yes, but greed will always exist. Scammers cover up their operations so much that yes, many fall into the Ponzi trap. At the time of Bitconnect, I didn't understand at all the point of exchanging BTC for something else to lock it up for a while. But the Bitconnect token was at the top of the coinmarketcap charts and promised incredible ROIs, which attracted people. I then remember all the videos on YouTube of people who had lost everything. But I will also never understand how you can invest all your savings in a single project/token/coin (unless it's BTC and you have time to hodle)

It is one thing for scammers to always play smart to cover up their tricks. They do this so that their victims can not detect their schemes and do not run away. At all costs, they want to make sure you never understand it until they are done scamming you before they flee, leaving their victims in agony and pain. It is just left for us to always be as smart as possible to always do our own research so we could be on the safe side otherwise there would always be complaint of scames and hacks everyday.

With respect to savings, it is never advised to depend on a particular investment, there is a sayings that say "do not carry all your eggs in one basket" which means that in no account should one depend on one source of income or put the whole of their funds in one investment no matter how  enticing the rewards make look nobody should make such mistake, invest smart and be wise.

[GeorgeJohn]

not everyone who is bitcoin investor that panic when the price of Bitcoin is going down, the thing is that most of the people that panic to sell when the price of Bitcoin decreasees, is the people who new in bitcoins investment, because someone who is new in bitcoins investment will definitely be afraid of the downfall of Bitcoin, but someone who has witnessed different falling of Bitcoin will not panic to sell bitcoin when the price drops in the market

Because it has been mastered by regular falling of Bitcoin price, if I'm not mistaken, I know very well that bitcoin price is something we need to understand that it never be a constant something, it always decreasees and also increases in price.

Exactly not all people who invest in Bitcoin get worried when  price goes down especially those who believe in Bitcoin and long term holder. Usually new investors who quickly sell their Bitcoin when price drops. This happens because they are still learning about ups and downs of cryptocurrency market. Experienced investors however have seen price drop before and stay calm. They know that Bitcoin price always goes up and down so they are ready for it. Investors need to understand this and get used to it. If they do, they can make better decisions and avoid selling quickly when price drops.

That's exactly my point, when you're a trial of Bitcoin investment and it has master you, I think that whenever the price of Bitcoin dropping in the market it will no longer affect you, but people who is new investors what they expect immediately they invest on Bitcoin,  is for the price of Bitcoin to continue to rise, when bitcoin price increases they become happier, but when the price decrease immediately they purchase Bitcoin, they will become restless, so its the beginners of Bitcoin investors that panic to the extent of selling their Bitcoin, at cheaper rate in order to recover their capital, because they lacks patients until when bitcoin price will increase.

[Ziskinberg]

Why do people sell their Bitcoin due to fear of the  current drop in price. Do They feel the price will drop further and never go up again ?

There are different reason for individual to sell their bitcoin such as:

-Profit taking, maybe they already bought below current price.
-Panic selling, this is common for newbies who dont have experience.
-Form of salary or compensation amd selling whatever price bitcoin hits.
-Selling and buying for other coin or altcoins. Shifting priority.

Therefore selling bitcoin when there’s a price drop does not instantly mean that he’s at loss. With these reasons listed above, I can say that selling could also mean profit taking, and that they have to sell immediately before those profits will be gone. Except for those newbies who aren’t aware on what’s the right thing to do, but the rest of those who’ll sell are certainly because they want to gain profits, or that they want to add or change investments.

[PX-Z]

Therefore selling bitcoin when there’s a price drop does not instantly mean that he’s at loss. With these reasons listed above, I can say that selling could also mean profit taking, and that they have to sell immediately before those profits will be gone.

Selling at price drops is equivalent to losses. It will only applicable if you don't sell regardless the price drops, it won't be considered a loss. Any profit you previously gained is now part of your current capital, so unless you sell at a lower price than your entry, it hasn’t been lost. It's important to separate paper losses from actual losses and stay focused on your long-term strategy.

[Rustam Meraj]

That's exactly my point, when you're a trial of Bitcoin investment and it has master you, I think that whenever the price of Bitcoin dropping in the market it will no longer affect you, but people who is new investors what they expect immediately they invest on Bitcoin,  is for the price of Bitcoin to continue to rise, when bitcoin price increases they become happier, but when the price decrease immediately they purchase Bitcoin, they will become restless, so its the beginners of Bitcoin investors that panic to the extent of selling their Bitcoin, at cheaper rate in order to recover their capital, because they lacks patients until when bitcoin price will increase.

You explained little more well and yes experienced investors are used to market ups and downs and are not worried when price drops. They know that Bitcoin value can change a lot. New investors however mostly think price will keep going up forever. When it drops they get anxious and might sell their Bitcoin at loss to try to get their money back. This happens because they do not have enough patience and do not understand how market works. Experienced investors have been through many market cycles and can handle ups and downs better. New investors are on other hand are more likely to make quick decisions based on short term price changes.

[asarfiar]

Selling at price drops is equivalent to losses. It will only applicable if you don't sell regardless the price drops, it won't be considered a loss. Any profit you previously gained is now part of your current capital, so unless you sell at a lower price than your entry, it hasn’t been lost. It's important to separate paper losses from actual losses and stay focused on your long-term strategy.

The price at which Bitcoin is now may be lower than the price at which you bought it, but if you do not sell it at this time and hold it, you will not suffer any loss. The comment you have made plays a very important role for Bitcoin investors. There is a difference between paper loss and real loss, suppose you have invested in a stock and when the market falls, you not sell it hold it in the hope of making a high profit, then it will not be considered as your real loss. Deciding not to sell and hold it for a long time is considered as paper loss. And if you decide to sell later in the face of market volatility, then you have suffere a real loss.

As a paper loss, I think of the instantaneous change in price. Your previous profit is part of the current capital, but if you decide not to sell your Bitcoin, your profit will not be converted into a real loss. And if you decide not to sell because the price has fallen, it will be a paper loss.

I think Bitcoin investing should be a long-term strategy, because in the long run, temporary market declines or price volatility will not be able to upset you. If you follow a long-term strategy or can trust your decisions, then this will be the best way for you to invest in the long term.

[Tmoonz]

Some are not in for long-term holding; they are in for making short-term profit and can't risk waiting for Bitcoin to fall down and climb up again. They sell under pressure not because they are afraid the price will not go up but because they don't want their portfolio to reduce below what they are seeing and want to rebuy when they have seen the price drop down where they can consider the dip. But in most cases, some traders that behave that way end up losing money, as they might not be able to see a good entry price to rebuy.

And another thing that intensifies such fear in them is when they prioritize investment over their important needs, since all they are looking for is to maximize short term profit they don't mind investing in such a way they will began to struggle to sort out their basic needs and when they see the price drops they become terrified and some will end up selling at lost to sort out bills, there wouldn't be any fear is long term is the objective and one is investing from his or her discretionary income.

[AVE5]

Some are not in for long-term holding; they are in for making short-term profit and can't risk waiting for Bitcoin to fall down and climb up again. They sell under pressure not because they are afraid the price will not go up but because they don't want their portfolio to reduce below what they are seeing and want to rebuy when they have seen the price drop down where they can consider the dip. But in most cases, some traders that behave that way end up losing money, as they might not be able to see a good entry price to rebuy.

It is really a weird situation as most people just think people who sells on the falling approach of the market is due to their skeptic that the price won't rise again.
How do we even describe the fear of missing out (Fomo)? This is and intrinsic behavior of Short term investors who're just there to invest and make profits in the short time at a good market entry comparing their purchase entry.
In other not to stay longer after which they've accumulating values to their profitablity, there's seem no need to keep holding and watching your values falling back. And you know, it recovering with good significant value can take a while since the market is unpredictable.
So, the required option is to sell and bargain on buying again on the low price.
Just have to understand investment goals and strategies of short term and long term investors are not the same and everyone Investors mustn't be long term holders.

[Agbamoni]

Why do people sell their Bitcoin due to fear of the  current drop in price. Do They feel the price will drop further and never go up again ?

Are you holding Bitcoin yes, or no? If you have Bitcoin in your wallet, you must plunder why the market decides to go down at this point. It becomes even more frightful to you when you are short term trader. Most persons are trader, and they are in for short gains when the market starts going against their trade it is a huge loss for them this is part of the reason you see people fear when the market starts dipping. They don't feel it won't go up again, they feel they are losing their money already as the price keeps dropping. Only long-term investors don't care when it drops because the price will surely come back up.

[Porfirii]

Why do people sell their Bitcoin due to fear of the  current drop in price. Do They feel the price will drop further and never go up again ?

Are you holding Bitcoin yes, or no? If you have Bitcoin in your wallet, you must plunder why the market decides to go down at this point. It becomes even more frightful to you when you are short term trader. Most persons are trader, and they are in for short gains when the market starts going against their trade it is a huge loss for them this is part of the reason you see people fear when the market starts dipping. They don't feel it won't go up again, they feel they are losing their money already as the price keeps dropping. Only long-term investors don't care when it drops because the price will surely come back up.

I don't agree with the phrase in bold. According to CMC 74,2% of addresses haven't carried out any transactions in the last year, and only 4,26% have done it in the last month. So many people are holding.

Nobody likes losing money and those who made a bet to make some profit may panic if they see that the price starts going down. Even those who plan to hodl will suffer in difficult moments, nobody said the life of the hodler was easy, but it's usually money they can afford to lose.

[Renampun]

Why do people sell their Bitcoin due to fear of the  current drop in price. Do They feel the price will drop further and never go up again ?

I feel before anyone invests on Bitcoin they should get a proper understanding of how the Bitcoin market operates. Because if an individual has good understanding they will know that the rise and fall in price of Bitcoin is normal so there won't be a need to panic rather see it as an opportunity to accumulate as much as possible in anticipation for a rise in price.

for that reason why ongoing discussion is very necessary because not everyone gets the same information, even now there are still many investors who do not know at all about the DCA method. I have been in bitcoin and cryptocurrencies for several years so I am not afraid of crypto price volatility because I know that the market will not always be red, the market will definitely return to green, only time will tell.

now we see a fairly drastic decline in bitcoin in the last month, take advantage of this opportunity by buying regularly and I am sure wise investors will use DCA consistently to get maximum profit on their long-term investments.

[Ever-young]

As much as I believe in the potential of Bitcoin, today I feel that it has lost its original purpose. It has become an object of mass speculation only, not everyone is prepared for this type of volatility; in 30 days, Bitcoin has depreciated by 8.3%, which for many is a considerable loss. I don't judge those who are overcome by fear when the price drops!

It is expected those who are unprepared will buy bitcoin to invest in a short time that they can to make some profit. Bitcoin can never ge predicted no matter how you think you are so familiar with market. 

Bitcoin be on predicted and volatile is what people needs to put at the back of their mind,  this will bring no room for speculations and be prepared to invest. When their is no expectation of the price of bitcoin in the market,  whatever may be the condition of the market , it won't make one to be panic to sell because already one has made up the mind to invest and this is a decision well taken.

I totally understand what you’re trying to say, but then again, at some point in every investment made, there’ll always be an expectation, and it’s not wrong to have an expectation, I mean you’re putting your money on the line and it’s just normal to expect something in return. But those expectations needs to be realistic and that’s what really matters. Yes Bitcoin has the potential to turn a few hundred dollars into thousands in the shortest period of time, but this is likely to happen in an unexpected manner and so it’ll be unrealistic to have such an expectation of Bitcoin. And so, since Bitcoin has already shown in countless occasions just how much potential it has when it comes to long term growth, and even if this isn’t 100% certain, but it’s still more realistic than expecting short term gains that’s most likely impossible to achieve.

[avp2306]

Why do people sell their Bitcoin due to fear of the  current drop in price. Do They feel the price will drop further and never go up again ?

I feel before anyone invests on Bitcoin they should get a proper understanding of how the Bitcoin market operates. Because if an individual has good understanding they will know that the rise and fall in price of Bitcoin is normal so there won't be a need to panic rather see it as an opportunity to accumulate as much as possible in anticipation for a rise in price.

for that reason why ongoing discussion is very necessary because not everyone gets the same information, even now there are still many investors who do not know at all about the DCA method. I have been in bitcoin and cryptocurrencies for several years so I am not afraid of crypto price volatility because I know that the market will not always be red, the market will definitely return to green, only time will tell.

now we see a fairly drastic decline in bitcoin in the last month, take advantage of this opportunity by buying regularly and I am sure wise investors will use DCA consistently to get maximum profit on their long-term investments.

That's the reason aside from believing on single statements we better try to hear many recommendation of people then learn with it. Because its important that we don't listen on one sided opinion since this might put us on higher risk. What good thing about this is we have a good community here and people could learn a lot from what methods they are trying to use.

If people want to know more about DCA they could learn a lot they could provably learn a lot about this strategy if they join a discussion that tackle up about DCA.

Market is showing good example since after it dumps at $75k or $76k it slowly recovers now and price currently stays at $81k - $82k price level.

[wakier]

Why do people sell their Bitcoin due to fear of the  current drop in price. Do They feel the price will drop further and never go up again ?

I feel before anyone invests on Bitcoin they should get a proper understanding of how the Bitcoin market operates. Because if an individual has good understanding they will know that the rise and fall in price of Bitcoin is normal so there won't be a need to panic rather see it as an opportunity to accumulate as much as possible in anticipation for a rise in price.

That is why if we want to invest we have to wait for a correction or a fairly deep price drop so we can buy at a lower price and don't get carried away by Fomo, afraid of missing out if we don't buy now because something like that will trap us into buying when the price is high, experiencing a price drop is a natural thing if we have already bought at a high price, don't sell it at a low price, it's better to add and wait for it to increase again, as long as you use cold money then it doesn't matter and don't panic even if the price drops.

[Zanab247]

Financial situation is the major thing that makes people to fear to sell their BTC, because they know that what make the price to dump more, it will not allow them to achieve what will solve their financial issues. Loan is another thing that makes people to fear to sell their BTC in the market, the moment they discover that the price of BTC is heading to were they will not be favour to pay back their loan, they will sell without considering were the price will hit in the future.

But those that have mind of long time hodling, I don't think they will be afraid of any price that may hit the market suddenly, because they know the price BTC will hit, before they can change their mind to sell to achieve their target from BTC investment.

[RockBell]

As much as I believe in the potential of Bitcoin, today I feel that it has lost its original purpose. It has become an object of mass speculation only, not everyone is prepared for this type of volatility; in 30 days, Bitcoin has depreciated by 8.3%, which for many is a considerable loss. I don't judge those who are overcome by fear when the price drops!

And what you need to understand  is that I don't know what your reasons might be for making the statement, because no matter how bad it is bitcoin is still one of the best investment that anyone can actually invest in because what you decide will be determine the faith of your investment.

And before they invest they should make serious research because people already know about  volatility because when you understand that you have make things easy for your self by know what it takes to own Bitcoin Because how do you manage this kind of thing when you don't have idea about their is enough reason why they tell people to go for knowledge first.