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The last few hours have been quite stressful for investors of Bitcoin and other cryptocurrencies, short-term and long-term alike. The sudden and extreme decline in Bitcoin’s price was nearly catastrophic and might have changed the perspective of short-term BTC investors.
As observed, the price of Bitcoin quickly fell below $40,000 within a matter of minutes but bounced back shortly after. However, the unexpected plunge of the crypto market took many by surprise and caused some major investors to withdraw their funds from the exchanges.
According to reports, $750 million in Bitcoin was transferred out of major exchanges within a few minutes, which left the BTC enthusiasts to wonder if it was the end for the flagship cryptocurrency.
The steep correction of the crypto market highlighted the volatility of the industry. However, large and long-term investors used this as an opportunity to make more investments in crypto.
Is the Response of Long-term Investors Encouraging for BTC?
The flagship cryptocurrency saw a shocking drop of $10,000 within minutes, which was its lowest point since January 2021. During this time, the short-term investors who had been in the crypto space for less than a year were quick to sell most of their BTC portions.
However, a more interesting matter is the response of long-term and large investors, known as Whales. While most people were devastated and hopeless regarding the price of cryptos, the Bitcoin Whales were busy accumulating the digital currency.
The optimism of Bitcoin Whales can be seen as a positive indication regarding the price of Bitcoin. This can even be encouraging for people who are interested in buying Bitcoin at the moment. If the long-term investors have not sold off their BTC holdings it can hint that the flagship cryptocurrency will bounce back higher than where it is now ($40,323 at the time of writing).
Therefore, people who are interested in buying Bitcoin can use exchanges such as SwissBorg or Kraken to invest in the cryptocurrency.
Once they have purchased BTC, they can even consider becoming crypto traders, in which case they can use ByBit.
It has also been reported that the overall spot trading volume hit the roof as the spot volume for BTC/USD pair went up to a record of $9 billion.
Effects on Other Altcoins in the Crypto Market
Apart from the downward momentum of Bitcoin noted yesterday, the sudden dump in the price of cryptocurrencies was even worse for altcoins.
Ethereum, Ripple, Binance Coin, Cardano, to name a few, experienced a 30%-40% decline, which was damaging for altcoin investors and traders.
How Can You be a BTC Investor or Trader?
The cryptocurrency industry is known to be volatile, regardless, it draws the attention of millions of people on a global scale. Trading or investing in any cryptocurrency has its pros and cons, however, choosing a secure exchange to buy, sell or trade cryptos is essential, especially for novice parties.
Despite the alarming situation of the crypto market observed yesterday, it is safe to say that Bitcoin and other altcoins will soon resurface, be stable and even surge higher. Therefore, if you are interested in stepping into the crypto world then it is safe for you to use exchanges such as SwiissBorg or Kraken.
For beginner and expert traders alike, one of the top exchanges to use is ByBit. Whereas, people who do not have much time to actively trade, can consider copy-trading with PrimeXBT Covesting.
