Surely you have seen the news regarding the market downturn. But is there any reason to panic? Or is it something we already know and can therefore see a pattern repeating itself? Let’s take a look at it.
The ups and downs of the markets
Every market experiences ups and downs. Indeed, the economy as a whole experiences these downturns and expansions. There have been several such crashes in recent history, but they have returned to normal. Some have lasted longer and others shorter. For example, the 2008 crisis plagued us for 2 years, and then followed a decade when hardly anyone remembered the crisis. So the real question is whether this downturn is something that we will get over quickly or whether we will struggle with it for several years.
Not so distant history
Whatever the answer to that question, the important thing to remember is that everything will be fine again. The market has been through such downturns before and has always recovered. Just in the last 50 years we have a few examples that you may remember. In the 1970s, with the end of the gold standard and the added oil crisis, the S&P 500 index fell from 50% in one year, only to recover. First by 76% and then by 133%. You may also have vivid memories of the aforementioned 2008 crisis.
But what about cryptocurrencies?
It’s the same for cryptocurrencies. Bitcoin itself has gone through several such crashes and has always come back with even more force, and with it the entire crypto market has risen. If you’re invested in cryptocurrencies and you’re holding them, don’t panic, don’t sell, hold on. The market will recover and grow again. Investing is also about emotions and such crashes can shake them up very quickly and strongly. But the important thing is to stay calm and stick to the golden rule of not investing more than you can afford to lose. Some will use this to add more funds to their portfolio. There is opportunity in everything.