Why is Bitcoin still a store of value?
Inflation is spreading around the world, the US economy is being affected, U.S. stocks are melting, and people are selling stocks in exchange for cash during the crisis.
Bitcoin short-term price movement depends on traders
Bitcoin is a global digital currency, and people trade 24/7. There is no fuse, and no institution can intervene to stop its price movement. When the price of Bitcoin plummets, some diehard fans may become anxious and start selling their Bitcoin.
Traders want to make money, they make a living by price changes. The short-term price trend of Bitcoin is speculative, and it is difficult for you to predict its daily price trend. Looking at the stock market index, when many stocks may plummet, some stocks are still in a good position. For Bitcoin , it is a special asset, so its price movement is very unstable.
Bitcoin is still a store of value
If we look at the daily and monthly lines, we can see that its long-term price trend is still rising. The current crisis is due to external factors. Inflation and poor economic policies are affecting the global economy. Poor market conditions are forcing people to flee the asset market. In the long run, Bitcoin is still a store of value.
In the short term, the price movement of Bitcoin is affected by traders. But in the long run, long-term currency holders will ultimately determine their price trends. In the long run, I mean the time range is 5-10 years.
In the long run, Bitcoin is a store of value.
In the short term, Bitcoin is a speculative asset.
Sell Bitcoin
I usually ignore short-term price movements and follow my investment plan.
I think a reasonable investment method is to compare Bitcoin with other assets. If I see that Bitcoin is overvalued compared to real estate or stocks, I would consider selling Bitcoin. This is my personal opinion on how to deal with the price trend of Bitcoin, you should do your own research.
