Reasons why Long- term investors fears over drop in Price of Bitcoin

[Nathrixxx]

Should long time investors even have any doubt in mind about what distance to end from bitcoin investment, being a genuine holder, they should know that even if the market falls, there is right tendency of rising in due time as long as the keep holding, while the moon they do so will also make their profit increase over the time, you can't imagine a bitcoin investor who holds for more than 8 years not to have better income from his investment in Bitcoin than someone who barely managed to hold for just some months.

[Rabata]

Have an emergency funds separate

I have emergency funds in bitcoin, stable coins pegged to United States dollar and in local currency. The local currency is the worst because it has reduced almost 5 times in purchasing power within 3 years. It is followed by the USDT and USDC that I have. The best has been bitcoin, but I do not just buy bitcoin blindly. I started buying bitcoin when its price has just fallen after a long period of all time high has been the time I buy bitcoin. Bitcoin is very different if you can follow a good buying plan.

Do you have to wait for a certain period of time before you buy like you said you had to wait for the price of bitcoin to drop after it stayed up for a long period of time before buying and I'm curious to know how efficient and effective these your technique works for you ?

For some investors, buying is profitable when the price of Bitcoin drops after high prices, but many times the big problem for such investors is that they have to buy Bitcoin at a higher price later. Some may even lose the spirit of investing because there are many who are no longer interested in investing after the price increases. I think a better strategy is to do DCA. No one can say for sure when the price of Bitcoin will drop. If someone keeps buying Bitcoin regularly, he will have the opportunity to accumulate Bitcoin for a long time. Undoubtedly, those who can buy from the dip can benefit more from the rise of Bitcoin later, but since it is uncertain when the price of Bitcoin will rise and fall, DCA is the best strategy.

[Agathamay]

Have an emergency funds separate

I have emergency funds in bitcoin, stable coins pegged to United States dollar and in local currency. The local currency is the worst because it has reduced almost 5 times in purchasing power within 3 years. It is followed by the USDT and USDC that I have. The best has been bitcoin, but I do not just buy bitcoin blindly. I started buying bitcoin when its price has just fallen after a long period of all time high has been the time I buy bitcoin. Bitcoin is very different if you can follow a good buying plan.

Do you have to wait for a certain period of time before you buy like you said you had to wait for the price of bitcoin to drop after it stayed up for a long period of time before buying and I'm curious to know how efficient and effective these your technique works for you ?

For some investors, buying is profitable when the price of Bitcoin drops after high prices, but many times the big problem for such investors is that they have to buy Bitcoin at a higher price later. Some may even lose the spirit of investing because there are many who are no longer interested in investing after the price increases. I think a better strategy is to do DCA. No one can say for sure when the price of Bitcoin will drop. If someone keeps buying Bitcoin regularly, he will have the opportunity to accumulate Bitcoin for a long time. Undoubtedly, those who can buy from the dip can benefit more from the rise of Bitcoin later, but since it is uncertain when the price of Bitcoin will rise and fall, DCA is the best strategy.

You raised a great point but on the other hand, I think almost all the post about how to buy bitcoin is now focusing on the DCA method making it seem like the only actual bitcoin buying strategy which isn't right because we got some other strategies and my reason for asking oshonsondy about the strategy he uses isn't because I want to oppose his idea but simply because I want to learn how profitable the strategy he talks about works.

[Nahl]

Bitcoin is fully volatile even we still don't know at what prices bitcoin reach in the future if price drop i think whether it newbie investor or expert investors will being panic to see their investment value decline and i think being fear is normal because nobody want to lost their money especially when they were put their money to the investment assets which this time we were talking about bitcoin in my opinion not everyone fear to see bitcoin price drop because long term investors know the risk if they hold bitcoin for long term too that's why they didn't suddently invest to bitcoin without proper knowledge about the risk and i think those who involved to bitcoin world for years have realize that but they still believe in bitcoin

[serjent05]

Another factor is fear of losing gain, social worried, emotional regret, etc. one can believe in Bitcoin for  long but intellectually it's volatile it rise and down fall can happen in an twinkle of an hour.

The main reason is that they don't understand the market.  If a person fully understands how the market works, fears, uncertainty, and doubt won't enter their mind.  This is also why many financial advisers tell investors to fully understand their investment market behavior.

Aside from that, although they are thought to hold their investment long-term, they are triggered by hype, their foundation of trust in their investment is too shallow, and a slight downward market movement will shake them into selling their holdings.

[GeorgeJohn]

What you said is just an exaggeration, because their's no poof to backup your claims...You can't read the minds of all the bitcoin holder and know if they have fears if the price of Bitcoin drops....

Some of the bitcoin investors do invest with target...some also uses bitcoin to bank their finances...Let me clears some of us doubt, it's not necessary that everyone that invested in Bitcoin do invest because of profit...this is the place we got wrong...

Some investors do invest for long-term and they're not interested to know if the price of Bitcoin increases or not until it reaches to their targets...some in summary not all investors panicked if the price of Bitcoin depreciate in the market...

[Jubilee58]

In conclusion
As a mature Bitcoin investor your mideset towards losses is ought to be mature don't assume have it at the back of your mind that , it's volatile before entering, be disciplined, and control your emotions so it won't affect your mindset and decisins

Bitcoin investing requires matured mind. This does not mean the number of years you have known Bitcoin or the amount of money you have invested in bitcoin, but maturity in bitcoin investing means understanding how bitcoin works, and invest according to bitcoin rewarding principles which is long term holding. Understanding how bitcoin rewards investors is very important, and this is what will give you the gusto and verb to even persevere during bitcoin market volatility, and stay very calm.

Patience is the key to gain good profit in bitcoin, and impatience is the character of newbies who don't fully understand how the bitcoin works, and they need to be thought. We have seen people who make fortune through bitcoin investing, they are not impatient people, but long term investors.

[AmoreJaz]

Another factor is fear of losing gain, social worried, emotional regret, etc. one can believe in Bitcoin for  long but intellectually it's volatile it rise and down fall can happen in an twinkle of an hour.

The main reason is that they don't understand the market.  If a person fully understands how the market works, fears, uncertainty, and doubt won't enter their mind.  This is also why many financial advisers tell investors to fully understand their investment market behavior.

Aside from that, although they are thought to hold their investment long-term, they are triggered by hype, their foundation of trust in their investment is too shallow, and a slight downward market movement will shake them into selling their holdings.

In short, it is the ignorance why a lot of people are afraid of something. As they don't know what's in it for them, they are adamant to that particular subject. This is the usual dilemma of most, but once you learned something, I believe you will be more courageous to take a path on any market.

[d5000]

Bitcoin miners are like investors, and they have very different financial positions so that if among investors there are strong hand investors and weak hand ones, it's similar with Bitcoin miners with good or bad financial and risk managements so that they will either stay or leave the Bitcoin mining industry when Bitcoin market has decreasing movements.

Correct. I guess however the margins of mining in advanced bear markets are a bit thin to speculate and thus most will be selling almost everything they generate, because we're talking about an industry with quite high costs currently.

I think the option to switch a part of the installations to AI or other cloud based computing services can help miners sustaining themselves and perhaps to survive bear markets even if the margins become negative, profiting when the bull roars again. Contrary to public belief (many think that AI services reduce hashrate) because the survival of mining corporations is more important than a temporary loss of hashrate to AI, and thus that actually might be the effect that smoothens the hashrate curve in the 2025-26 bear.

A smooth hashrate curve was present before the AI boom too. Almost never there were drops of more than 20% (only exception I have in mind was the China mining ban in 2021 which had a very specific reason). But my guess is that Bitcoin's price curve was steep enough for mining to be profitable almost for all miners even in the deepest crypto winters. For example, between early 2017 and late 2018, even with the bear market in-between, the price rose about 200% (from $1000 to $3000).

It would be interesting if hashrate could drop sharper in bear markets if the AI bubble ends, as some miners would then have to retire completely from the market.

[disbil]

Have an emergency funds separate

I have emergency funds in bitcoin, stable coins pegged to United States dollar and in local currency. The local currency is the worst because it has reduced almost 5 times in purchasing power within 3 years. It is followed by the USDT and USDC that I have. The best has been bitcoin, but I do not just buy bitcoin blindly. I started buying bitcoin when its price has just fallen after a long period of all time high has been the time I buy bitcoin. Bitcoin is very different if you can follow a good buying plan.

I think so with you, won't to be long term holder for buying bitcoin at higher price and must waiting for after bitcoin get dip or lower price then selling later after breaking without have to wait several years later. I learn more from bitcoin pattern after several time made new ATH always have cycle bitcoin dip to lower price and significant up to 40% dropping from current ATH price,
If get opportunity buy bitcoin at dip price and few weeks or months later bitcoin break out earn profitable up to 40% I think is the time for selling our bitcoin assets, don't be greedy holding for long term because bitcoin always have pattern will dump significant after success hitting new ATH price how did previously last two ATH raised.

[MarjorieZimmermanGinger]

In conclusion
As a mature Bitcoin investor your mideset towards losses is ought to be mature don't assume have it at the back of your mind that , it's volatile before entering, be disciplined, and control your emotions so it won't affect your mindset and decision.

Experience teaches everyone valuable lessons and for those experienced in Bitcoin investing, declines aren't a major problem. With careful preparation and investment steps, it actually provides an opportunity to accumulate larger purchases during price declines.. That's why experienced investors prepare several steps, such as how to capitalize on potential sharp price declines so that they can adjust their investment strategies in certain situations.

Emergency funds can be an alternative source of funds to be used for purchases under certain conditions, which is why I say experienced investors have good financial patterns and management. If you invest in a long-term investment model, there's no need to worry about declines and can be used to make larger purchases in such circumstances if you can manage your finances well.

[Rustam Meraj]

Experience teaches everyone valuable lessons and for those experienced in Bitcoin investing, declines aren't a major problem. With careful preparation and investment steps, it actually provides an opportunity to accumulate larger purchases during price declines.. That's why experienced investors prepare several steps, such as how to capitalize on potential sharp price declines so that they can adjust their investment strategies in certain situations.

Emergency funds can be an alternative source of funds to be used for purchases under certain conditions, which is why I say experienced investors have good financial patterns and management. If you invest in a long-term investment model, there's no need to worry about declines and can be used to make larger purchases in such circumstances if you can manage your finances well.

Purpose of having emergency fund is to prevent any real life unexpected event from ruining your life, like medical emergency or unemployment. You will be putting your personal life in bare cup if you are investing that cash that is needed now in highly volatile investment simply because it is cheap.

Financial discipline is actually must and highly critical issue is there should be both buckets with regard to differing goals. Good investors make investments without using their cash. They have reserves in hand, or dry powder and are only offered in event of dip in market. It enables them to more easily gather more coins when they are in crash without financial strain at home. It is not risky gamble with emergency savings that is the basis for long term plan.

[osasshem]

I don't think long term investors are afraid of price drop, neither are they much affected, because they are certainly aware of the market conditions and how price fluctuates, the bull and bear market are things they understand. Knowing this, long term investors takes a period of minimum 5 years, while those on short term investment are the ones that panics when price drops.

Formally Long term investors do expect volatility, expecially when it's drops. Sometimes it's makes them feel's nervous and pained expecially when it's affects their personalities for those investors that trades on Bitcoin, it affects their net worth on paper, makes people sells their Bitcoin unplanned.

Big investors and whales don't sell their Bitcoins unplanned, they use strategy to sell, which creates fear for the weak hands to sell theirs for the big investors to re-buy at a lower price. They understand the system more by using their actions of having large portion of the circulating supply.

[passwordnow]

3. The Bitcoin market is saturated.

I am a long term investor but I don't think that it's saturated. Maybe some think that it is but it's not. What saturated is the altcoins market, there's so many of them already. But if it's with bitcoin, what is its competition? Is there any competition that we can think of it? I don't think that there is. If Bitcoin's market is saturated then these institutions won't flock and quick to accumulate. As you can see, it's the opposite of what we're seeing right now. So to say that, there could be a basis why they think it's not and why others think it is but that's my stand.

[Supreme Donvic]

I don't think anyone who is investing in Bitcoin for a long-term will be afraid when the price of Bitcoin drops the only people that usually become afraid when the price of Bitcoin drops are those who are trading Bitcoin but those who are long-term investors usually don't fear because they know that if bitcoin drops it will only take time for it to rise again so there's no point in being afraid and again people who fear when the price of Bitcoin drops are those who are new into bitcoin investment they really don't understand how it works and when the Bitcoin press drop they began to panic but for those who have been in Bitcoin investment for a very long time now I don't think they would be afraid when the price of Bitcoin drops so long time investors usually don't fear over drop in Bitcoin price because they know it will rise again.

[bitbollo]

nowadays anyone that has understood the concept of bitcoin would never care anymore about a "drop".
you should never care about bitcoin price. you should never worry too much about "btc safety". you must be interested in bitcoin network.
if you know your investement, if you know bitcoin as HARD ASSET, as a real thing in your life... yes you don't really care anymore.
I think we don't need anymore any "confirmatory bias" from the value in USD...

It's like we are giving a value to a parachute.
Did you really care about the value nowadays or you really care about the function tomorrow ?

[BlackBoss_]

I am a long term investor but I don't think that it's saturated. Maybe some think that it is but it's not. What saturated is the altcoins market, there's so many of them already. But if it's with bitcoin, what is its competition? Is there any competition that we can think of it? I don't think that there is. If Bitcoin's market is saturated then these institutions won't flock and quick to accumulate. As you can see, it's the opposite of what we're seeing right now. So to say that, there could be a basis why they think it's not and why others think it is but that's my stand.

Bitcoin market is not saturated and its limited supply is an attractive specification so that people will recognize that with Bitcoin, if they join earlier than the others and if they can hold their coins in some years, they will very possibly get very good profit. So it makes people competing with each other for Bitcoin accumulation but the interesting fact is, in bear market, weak hands leave and give chances back to intelligent long term investors. While in a next bull run, there will be new people join the market and they will bring new money into this market, so no market saturation.

If you already realized this, let's keep accumulating bitcoin and ignoring any noise around as you know what you're doing and which results you will get in later years.

[passwordnow]

I am a long term investor but I don't think that it's saturated. Maybe some think that it is but it's not. What saturated is the altcoins market, there's so many of them already. But if it's with bitcoin, what is its competition? Is there any competition that we can think of it? I don't think that there is. If Bitcoin's market is saturated then these institutions won't flock and quick to accumulate. As you can see, it's the opposite of what we're seeing right now. So to say that, there could be a basis why they think it's not and why others think it is but that's my stand.

Bitcoin market is not saturated and its limited supply is an attractive specification so that people will recognize that with Bitcoin, if they join earlier than the others and if they can hold their coins in some years, they will very possibly get very good profit. So it makes people competing with each other for Bitcoin accumulation but the interesting fact is, in bear market, weak hands leave and give chances back to intelligent long term investors. While in a next bull run, there will be new people join the market and they will bring new money into this market, so no market saturation.

If you already realized this, let's keep accumulating bitcoin and ignoring any noise around as you know what you're doing and which results you will get in later years.

The problem with the upcoming investors is they think that it's too late for them to invest and the price is already quite high. You'll hear the same reasons from them. That it's already not enough for them to profit because what they want is the same profit as the early investors which isn't going to happen. Instead of doing their thing to have more, they keep on giving reasons to themselves not to dca.

[Orange89]

Bitcoin is  really growing rapidly, and alot of country's has formally adopt to the  system, using it for all kinds of payments in the society. Due to it fast and reliable system, people are really investing and trading on Bitcoin rapidly without fear and the system is trustworthy , fast in transactions and multiply after trading.

Sometimes Long term investors usually have this on their mindset
1. Time regulations :investors sometimes thinks in 20-25 years time it reacts differently from someone hoping to double it's profits in 6 months time.

2. If price drops below the cost of mining for too long less efficient miners shut off for sometime.

3. The Bitcoin market is saturated.

To be strong when this happens:
Have an emergency funds separate
Buy and keep predefined dips aside
Be on two sides etc.

In conclusion
As a mature Bitcoin investor your mideset towards losses is ought to be mature don't assume have it at the back of your mind that , it's volatile before entering, be disciplined, and control your emotions so it won't affect your mindset and decision.

Absolutely I agree i think the fear comes down to psychology more than Logic like we all say we are long term but when u see ur portfolio down 30% it just hits different yknow
the paper loss thing is real its easy to believe in bitcoin when its going up but when its bleeding for week even the one who have strongest hand get afraid as well and yeah if u need that money for real life stuff u might be forced to sell at a worst time which sucks
i also think social pressure plays a bigger role than ppl admit seeing everyone on twitter panicking or making fun of the bag holders can mess with ur head even if u know their fundamental are fine
if price stays below production cost too long it could actually hurt network security which is a legit concern not just emotions
at the end of the day i think the key is the only investing what u truly dont need on the short terms that way the dips hurt less and u can actually stick to the long term plan without stress

[monetizator4]

Every reasonable long-term investor does not look at short-term gains; they look at the bigger picture in the future. What long-term investors do during price drops is use the opportunity to accumulate bitcoins and still stay focused. Prominent and institutional investors are doing it and have been very consistent with it. This is the difference between long-term investors and others.

Long-term investors understand that volatility is a major part of Bitcoin, so they use it wisely. That is even the major reason why they opt for long-term hodling in the first place. So, if there is any investor who panics whenever there is a drop in price, then that investor is not ready yet to be an investor. He doesn't have a long-term projection for his investment.

One mistake anyone can make is planning to be a long-term investor without a stable source of income or reserve funds.

Makes sense. Institutions like MicroStrategy have been buying up BTC during dips, showing that steady accumulation can pay off. But it's not just about patience, it also requires careful planning with an emergency fund. Both strategies complement each other in the volatile crypto market