The cryptocurrency market has been on a downtrend for the past few weeks. The price of Bitcoin has increased from $20,000 to $8,000, while other cryptocurrencies like Ethereum, XRP, and Litecoin have also seen declines in value.
The market capitalization of all cryptocurrencies is currently around $450 billion, less than half of what it was a few months ago. This can happen for a variety of reasons, but one reason stands out above all else: the downtrend we've seen over the past few weeks has affected investor confidence and caused them to lose money. panic selling cheap property.
This is what happened during the last bear market when Bitcoin fell from a high of nearly $20,000 to $6,000 in January 2018. At that time, investors sold their entire portfolio because they felt the cryptocurrency was too risky and unstable for them to invest at such an early stage.
To avoid panic selling like we saw in the previous bull run, you need to ensure that your portfolio is not exposed to major risks or sudden changes in price movements. This means that you should always balance risk and reward when investing in digital currencies like Bitcoin and Ethereum.