Bitcoin Stock: Here’s Why I’m Still Holding

Bitcoin stock (BTC-USD) has plunged 72% after reaching an all-time high of over $69,000 per token in November (as of this writing). This has also followed the general downward trend of the stock market.

Market Analysis of Bitcoin Stock

Inflation began to rise more than a year ago and has yet to subside. This has compelled the Federal Reserve to raise interest rates to halt growing prices across the US economy. Investors have turned away from riskier assets in favor of safer alternatives, which has harmed Bitcoin and the cryptocurrency sector as a whole.

Tightening liquidity and a weakening economy might soon pave the way for a recession. As a result, Bitcoin stock (BTC-USD) may face even greater negative pressure shortly.

Perhaps I would have looked smarter in retrospect if I had liquidated my Bitcoin investment at its high in November of last year, but it’s tough to gauge the market or predict the precise top consistently. 

Maintain a long-term perspective.

Despite its price decrease, Bitcoin stock has still delivered a roughly 14,000% return since the spring of 2013. To be clear, I remain optimistic about the world’s most valuable cryptocurrency over the next decade. This is why I am still a holder.

A rising number of market players see Bitcoin as a real store of value, the equivalent of digital gold. Bitcoin, on the other hand, is more divisible, useful, and portable than gold. And these crucial traits may boost the cryptocurrency’s current market valuation of $371 billion, closer to the $12.5 trillion global value of gold. My position here is supported by the younger generations’ growing familiarity with and enjoyment of all things digital, a trend that will only continue.

Bitcoin stock (BTC-USD) has been allotted a chunk of the balance sheets of large firms such as Block and MicroStrategy. Big-time institutional investors are also getting involved. Cathie Wood’s investing business, Ark Invest, is tremendously positive on Bitcoin. Furthermore, Coinbase just announced a relationship with BlackRock, providing simple access to Bitcoin to the giant asset manager’s customers. Rising investor demand, particularly for a digitally scarce commodity such as Bitcoin, contributes to a greater price over time.

I know that the route to increased Bitcoin acceptance will be fraught with significant volatility, as it has been in the past. But, as long as I retain a very long-term time horizon, as I do with my whole portfolio, I do not doubt that I will be able to maintain my confidence and continue to hold Bitcoin.

Featured Image – Megapixl © Williammacgregor

Please See Disclaimer

About the author: Okoro Chinedu is a freelance writer specializing in health and finance, with a keen interest in cryptocurrency and blockchain technology. He has worked in content creation and digital journalism. Since 2019, he has written on various online platforms, and his work has been recognized by several important media sources and specialists in finance and crypto. In addition to writing, Chinedu enjoys reading, playing football, posing as a medical student, and traveling.