The effect of fluctuation in Bitcoin price to traders and new users varies depending on how they react to the volatility of Bitcoin. Most traders take advantage of the fluctuation and take profit on it. While new users, especially those who get in without thoroughly studying the Bitcoin market trend, often panic when they see the price of BTC dropping and FOMO when the price of BTC surges.
So the volatility of Bitcoin makes a person either lose funds or gain funds, depending on their reaction. So it is best to know what we are doing before jumping into any investment so that we can avoid panic selling or FOMOing that can cost us our funds.
You make a good point about how new users often panic during volatility. I've seen this firsthand since 2017-those sudden dips, like the recent $94k drop, can trigger knee-jerk reactions.
The key is understanding *why* Bitcoin holds value long-term. It's not just about price charts; it's about scarcity and game theory. Think of Bitcoin like a limited-edition collectible-its fixed supply makes it inherently valuable over time, even if the market swings wildly.
Newcomers who don't grasp this often get caught up in FOMO or fear. They might not realize that volatility is normal for a young asset class.
Back in 2014, I learned the hard way that keeping funds on exchanges is risky. Hardware wallets and seed phrases aren't just precautions-they're foundational. If you're serious about Bitcoin, study its economics, not just its price.
The market will always test your resolve, but understanding the fundamentals makes it easier to stay grounded.