This week’s market saw one of the largest corrections with DJIA losing more than 1100 points straight away due to the massive outbreak of coronavirus. When the stocks are plunging down, people often turn to blue-chips and safe assets like gold, oil, and bitcoin. But are gold and bitcoin shaky options for traders?
Whenever the market starts to go down rapidly, investors and traders seem to put their money into the blue chips while the safe-haven assets like Bitcoin remain exposed to the market’s ups and downs. So, in the short term, it won’t be wrong to regard safe-haven assets like Bitcoin shaky as compared to blue-chips.
Is Bitcoin shaky? Drops to $8600 in a week
Bitcoin was soaring in the $9500-$10,000 range a week ago. However, as it stands, it is struggling in the $8600 range right now. Considering a short term investor who pulled out his money to invest in BTC might have suffered a substantial loss.
In such situations, often traders and short term investors are left with nothing but losses. Rather than taking out the money after being hit, investors should look for a long term opportunity.
Bitcoin up by 4106% over a 5-year period, 137% in 1 year
If we consider Bitcoin as a long term investment opportunity, it has produced the most magnificent results ever seen. Looking at the last week and considering the 5-yer period, Bitcoin has risen by 4106%. For the one-year time frame, the cryptocurrency has risen by 137%. Despite Bitcoin shaky option, citizens in economically-troubled countries like Venezuela have put their faith in Bitcoin which in turn, helped to increase the volume of BTC trade.
As the market will start to rise again, the sudden optimism will drive the prices even higher due to more investments. Also, many industry experts have predicted Bitcoin will continue its meteoric rise in 2020 and 2021 as well. So, Bitcoin, for a short term opportunity might be a shaky option, but in the long term will reap heavy profits.
Featured image from Pixabay
