What Should Long-Term Investors Do If The Price Of Bitcoin Drops?

[Akaenyi]

Due to the fluctuation of Bitcoin price most investors who are holding their Bitcoin are scared of losing their entire Bitcoin because of the frequent changes of Bitcoin price recently, some investors are panic of selling all their Bitcoin because they don't want to lose everything.

So what are your advice to those long-term investors?
Should they sell their Bitcoin or they should keep holding to it despite the unstable state of Bitcoin price recently?

I don't know if you have a proof that most investors that are holding Bitcoin are scared due to price fluctuations, perhaps that price will crash and they will lose everything, if that were a fact I don't think that Bitcoin will gain such massive adoption today. What long term investors should do when Bitcoin price is dropping is to continue holding, there must be a reason why they decided to hold for long term and they should mantain such mindset. If you sell when price drops you will be at a loss, since Bitcoin have shown that it can always bounce back from dip I think that is a good reason to continue holding, even when it reaches ATH it will still dip again because it is a volatile asset.

[suzanne5223]

Selling Bitcoin due to the drop in price doesn't help every investor who's truly a long-term investor, i believe doing nothing, or buying more if you have spare capital it always the best thing to do due to how BTC has always been volatile. Besides, there's the moment when we’ve seen 70–80%+ drawdowns in the price of BTC multiple times in the past, and the price eventually recovered and went higher to create a new ATH price.
The people who sold in panic during drops are always the ones who end up losing money, while those who held or accumulated the dip make more profit.

Sometimes holding without a target for a stop loss is a foolish thing.

Stop loss is only applicable to Bitcoin traders, but setting firm boundaries/holding time span and sometime exits when the reason for holding is broken is for long term investors.

So selling during a decline can sometimes also be a good move to reduce losses.

Selling during a market price decline is never a good move to reduce losses for anyone (if emergency needs are not involved) if we're talking about BTC investment unless you're talking about a shitcoin.

But indeed there are many types of traders.

Now, I understand you. The discussion is about longterm investors.