Bitcoin's Market: Strategies for Handling Market Volatility

It's been a week after week of heartache for anyone with Bitcoin or any other cryptocurrencies in their wallet! The recent crash in cryptocurrency prices across the worldwide cryptocurrency market affects all digital currencies, new or old. In the crypto world, a Bitcoin crash is always painful for investors, which often involves losses in the double-digit percentage range. Due to the volatile nature of the cryptocurrency market, many financial experts expect crashes in Bitcoin particularly frequently, although this does not always happen. Nevertheless, there have been strong dips in the cryptocurrency prices, since the introduction.

Bitcoin Crashes again and again – Only to grow Stronger!

To understand the hysteria surrounding Bitcoin crashes, let's first take a closer look at the historical price trends and the corrections.

2011: June to November price correction of 94 per cent

Long before the hype in 2017, there was a Bitcoin crash that had it all. It began in June 2011 due to the loss of 25,000 bitcoins stolen from a computer. The value at the time was over $500,000. At a later date, the thief put the bitcoins back into circulation. By November 2011, the price fell by up to 94%, falling from $32 to $2.

Bitcoin Crash 2013: Price loss in April over 70 percent

Mt. Gox, a prominent Japanese currency exchange, not only caused the first cryptocrash two years later but also a renewed price drop in April 2013. The Bitcoin exchange suspended trading because the price had risen to over $266. However, instead of stabilizing, there was initially a price drop with the start of trading and Bitcoin fell to over 50 USD. Later the cryptocurrency prices stabilized at about 100 USD, but within a very short time, the price declined by over 70%.

Bitcoin Crash November 2013 to January 2015

The Bitcoin price forecast did not always look positive in the following months. The Mt. Gox exchange was also responsible for the third Bitcoin cryptocrash, or at least in part. The reason for this was the suspension of disbursements on 7 February 2014. As of February 25, 2014 the services of the Bitcoin exchange were no longer available. As a result of this, 850,000 Bitcoins were wiped out. Although some of them, about 200,000, were later "recovered", the loss of a total of 650,000 Bitcoin was enormous.

This led to building up fear of uncertainty among investors and in the cryptocurrency market itself. Numerous investors pulled out of the investment after this cryptocrash and finished buying Bitcoin for themselves. The result was a months-long drop-in, which finally reached its lowest point in January 2015. At that time, the price was quoted at about 178 USD.

Bitcoin Crash 2017: Losses in the double-digit range

After the Bitcoin price had recovered somewhat from the events of 2013-2015, there was a new CryptoCrash in 2017. Until then, interest in cryptocurrency had increased amongst more and more investors. In September 2017, however, there was another setback as the Bitcoin price dropped from over $5,000 to $3,000. The reason for this was China's statement that it wanted to ban Bitcoin in the future. This caused a stir among Bitcoin investors, which was reflected in cryptocurrency prices declining. Thus, in December 2017, the price fell from bitcoin high ($19,900) to over $6,800.

Can you recognize a Bitcoin bubble before it bursts?

Based on a mere look at the Bitcoin Chart for instance from tradingview, it is not possible to predict a Bitcoin cryptocrash. Especially for inexperienced investors, such a cryptocurrency market forecast is impossible. In addition to technical analysis, this also requires fundamental analysis. This means that not only the mere chart history is to be considered, but also blockchain stats, cryptomining activities as well as monitoring market capitalization as displayed by coin marketcap. Next, you’ve got to take into account general cryptocurrency market observations. What is the mood among investors and, above all, what is the mood in the crypto ecosystem?

Will the crypto market recover?

After the Bitcoin cryptocrash, investors can look forward to a positive development of the cryptocurrency market, according to analysts. In general, 2022 could be the most popular year for cryptocurrency prices and especially blockchain technology. For this, the analysts make various Bitcoin forecasts for 2022:

• The Bitcoin price will continue to rise
• nvestors too will multiply
• Bitcoin will turn into a strong payment network
• Interest from institutional investors will grow
• The matters of uncertainty around Taxation and Regulation will be resolved

Bitcoin Forecast: Prices Rise

The analysts assume that there will be a renewed price increase after the Bitcoin crash. Investors in the past are known to have overcome their reluctance and see to it that cryptocurrency continues to be in demand. Many experts even assume that Bitcoin will surpass the $100,000 mark in 2022.

Botsfolio - how do smart investors invest in the cryptocurrency market?

Botsfolio, as an automated crypto investment solution, aims to be more than just a bot or a strategy. Rather, it combines strategy, technology with your vision and financial goals to deliver a personalized investment solution. As soon as you sign up, it starts by asking really human questions to get a handle on what financial goals you want to achieve through crypto trading and how to best manage those aspirations with associated risks. You start by investing small and watch your portfolio grow with minimum risk.

Botsfolio - Advanced Risk Management and Investment Options

Let us examine the primary financial strategies that botsfolio implements through smart algorithms and efficient bots spread over portfolios of diverse assets.

Value Investment Strategy: 80-20 mix of large & small cap cryptos at a price that makes them undervalued by the market

Hedged Trading Strategy: Mix of spot and futures trading instruments to play hedged trades

Futures Trading Strategy: Trading of large-cap cryptos using a mix of trading strategies on futures instruments

Fixed Income Savings Account : Fixed rate of return 6 to 8% per year on dollar pegged USDT

Botsfolio - Advanced Risk Management and Investment Options

Let us examine the primary financial strategies that botsfolio implements through smart algorithms and efficient bots spread over portfolios of diverse assets.

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