Several experts have warned investors that high volatility — including “long downturns” — in the crypto market should be considered “normal” market behavior by long-term investors.
According to a report by CNBC’s “Make It”, after the price of BTC dipped below $33,000 earlier in the week, several experts it talked to said that such volatility is normal. Bitcoin, which reached an all-time high of around $69,000 in November 2021, has now fallen roughly 44%.
Tyrone Ross, CEO of Onramp Invest, explained volatility is not unusual for the cryptoasset marketplace:
Long downturns like this are normal with crypto. Folks should know that going in, and if you have the means, you should work with an advisor to guide you through these markets.
Ross advised crypto followers to avoid watching the price ticker and instead “zoom out” to see how the industry has performed over the last year.
The report claims a number of factors have made investors jumpy over the past few weeks, including the Federal Reserve likely signaling a raise in interest rates.
Certified financial planner Anjali Jariwala told CNBC that she recommends clients hold Bitcoin for at least ten years. She said prospective crypto investors should be comfortable holding onto their investment with a “longer term” approach while resisting the urge to sell when prices dip.
Douglas Boneparth, certified financial planner and president of Bone Fide Wealth, likewise recommended that crypto investors hold onto their assets for at least ten years. He said that crypto followers should “take a deep breath” and focus on the things they can control rather than the rapidly shifting price.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.