Hypothetically, if BTC crashed to $500, it would devastate investors who bought high and fuel crypto skeptics. Yet, history shows extreme dips often create buying opportunities. Would you see it as a bargain or a red flag? Or would fear outweigh the potential upside? Curious to hear your take!
We need to understand that even though a large number of people might have already bought into Bitcoin by this point, there is always a large number waiting to make an entry or a large number that is only getting to know about Bitcoin and cryptocurrencies. So, even though we know it's not going to happen, if Bitcoin drops to $500 a unit, there will always be a new set of buyers waiting for it, and they will take over the market from there. Those who lose money or everything they had will probably exit.
New buyers will buy Bitcoin, and also, there will obviously still be traders in the market by that point because it wouldn't drop to that point all of a sudden but it will happen periodically, so those who are currently in it, will probably still be there, just in a lot of loss if they have been buying every dip. Those who can still hold at that point might become the winners if it manages to recover from that point and hit $100k again.