On Monday, February 22, the Bitcoin price at $57,000, had exceeded the price of 1 Kg gold bar at $56,500, solidifying the claims of crypto stakeholders that the crypto is the new age investment asset class. What followed though is something crypto evangelists would want to unsee.
The price of the world’s leading cryptocurrency corrected and has fallen 9.45% in the last 24 hours, currently trading at over $48K. This has sent some novice investors into a panic, and other currencies also dropped in value sharply. Sumit Gupta, CEO and cofounder of CoinDCX, offered some perspective about the Bitcoin price correction. “After reaching an all-time high of $58,000, Bitcoin saw a price correction today.
This was expected as markets go through such correction cycles. However, the market showed signs of recovery after falling nearly 17%. Investments in Bitcoin, like any other asset, should be from a long term perspective as the fundamentals are still going strong. Hence it is advised that investors buy the dips and hold with a long term perspective.”
Previously, several crypto experts have talked about the possibility of frequent price corrections in Bitcoin, and how investors can guard against the price volatility of crypto assets. “At ZebPay, we encourage dollar-cost averaging — investing fixed amounts at regular intervals,” said Vikram Rangala, chief marketing officer at Zebpay.
Rangala advised that one should buy small amounts of Bitcoin daily or weekly, hold it long-term through the ups and downs, and stick to a buying plan for years, not months. “It’s like an SIP for bitcoin,” he said.