The crypto market experienced its worst single-day loss on March 12 as multiple cryptocurrencies prices plunged by more than 30% within 24 hours. Bitcoin alone lost around half its value while approximately $100 billion was wiped out of the entire market. This day earned the undesirable tag of the greatest daily loss and a place in the history books.
Under the circumstances, one would expect bitcoin and crypto investors to realize the disastrous nature of cryptocurrencies volatility and the perils of investing in the virtual currencies. Logically, such shocking market movements and massive losses would be viewed as a sign to fold up, count one’s losses and head for the hills. Any ordinary investor would be shaken to the core by such huge losses that could easily wipe out their wealth in a matter of hours.
However, this is not the case for Bitcoin and crypto investors, at least going by their reactions on Twitter.
Doesn’t matter that I’ve been around bitcoin for a long time, and that my bullish case is still intact – seeing this brutal 1 day move gives me anxiety. Sitting tight can be the hardest thing. pic.twitter.com/psFLRDrkrS
— Tuur Demeester (@TuurDemeester) March 13, 2020
Bitcoin investors defy logic
Luckily or unluckily, crypto investors are no ordinary bunch. They are no average Joe. They refuse to conform to society, they defy logic and love every moment of it. Where the ordinary investor sees market capitulation, they see an opportunity to buy the dip. When everyone is rushing to cash out before the asset tanks, they remain resilient and Hodl their crypto.
They have seen it all before, even though it was never of such magnitude, they know the result is the same. They know the market moves in waves; up and down. Even in the case of a black swan event, just like this one, they know the market always recovers.
I’ve seen worse moments in Bitcoin’s history.
We are on the path of maximum pain. Those who survive will earn the title of HODLer! https://t.co/jHwsnhuXbH
— Dan Hedl (@danheld) March 12, 2020
They rely on the knowledge that cryptocurrencies are highly volatile with crazy upswings and sharp declines. Therefore, they remain steadfast in the face of the recent sell-off with the understanding that their resilience will pay off once the panic subsidizes and the crypto market returns to normalcy.
Crypto investors: be greedy when others are fearful
Some crypto investors even saw the flip side of this market crash and encouraged others, including family and relatives to buy and stack up on the digital assets. After all, the best way to make wealth trading the market is buying the fear and selling the greed.
No lie. 5 friends have randomly asked me if they should buy bitcoin in the last hour.
— The Wolf Of All Streets (@scottmelker) March 13, 2020
For others, the crypto market crash is a blessing in disguise. Accordingly, the panic induced a sell-off from ‘weak hands’ and mainstream market investors thus ridding the crypto market of those interested in quick profits.
Prediction: $BTC is about to decouple from the stock market.
It has buyers.
It has a different set of fundamentals.
It has its own supply and demand rhythm.
Hodlers are not priced in.
— Checkmate
(@_Checkmatey_) March 12, 2020
Subsequently, this will cleanse the crypto space leaving it for those with long term interest and not easily shaken by massive price declines.
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