The level of set back in cryptocurrency world caused by the backdrop of bitcoin has set the virtual currency highly susceptible to new bear-market lows. we all knew what happened last week. but before that, within the space of just 24 hours, bitcoins 30-day volatility index more than doubled. this was not just the quickest volatility exhibited this year but the largest in terms of percentage growth.
The bitcoin volatility index shows a measurement of how much the price of BTC Varies over time.The 30-day reading is calculated using the standard deviation of the daily open price over the previous month. The volatility index is also reported at 60-day, 120-day and 252-day windows. In all cases, the figures have skyrocketed over the course of the week
So in this fast changing crypto space. Volatility can be a double edge sword. you can take a huge profit just like we did in 2017 or we could crash out just like what happened last week.
i also wants to point out that The ratio, which divides bitcoins market cap by its average daily volume, suggests we are about halfway through a long-term bear trend.there are effects behind the dangling price. Bitcoin finding support and resistances. Trying to adjust to a level. absence of buyers interest, declining trade volumes,etc.
At times Like this in the Cryptocurrency era, should investors and Holders Be worried?
Any investment in the market is risk, doesn't matter if we talk about crypto market, stock market, Forex etc.
So, the best advice is to never invest money we can't afford to loose.
Yes, btc price drop a lot this year but it's not specific only for crypto market.
The same thing also often happen in the other markets.
Smart investors know how to invest in order to minimize their potential risk.
Right now, I just hold my btc funds, no plan to sell.
I expect that soon or later btc price will raise again.