The situation of people who bought Bitcoin just a week age is like: Are you winning, Dad? No Son, pack your suitcase; I lost the house. 

Crypto is good when investors like to take the risk. Low rates are essential for buying.  It will recover after the drop.

Several investors feel like we are heading towards a crypto winter. It can’t be helped, and many of them are buying fear. They are withdrawing BTC from the exchanges.  There are others who continue to buy the DIP. To clarify, everybody are buying what they think is the dip in their own sense.

For clarity on Macroeconomics, “It is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole. For example, using interest rates, taxes and government spending to regulate an economy’s growth and stability.”

This drop in Bitcoin looks more like a global macro. Fears of a Fed tapering in response to inflation are causing institutional investors to sell “risk-on” assets. However, once when they realize that inflation is more of a concern than the Fed’s response, they will be looking for hedges.

Selling does not mend anything now, particularly with BTC; however, many do not realize it. There is a mixed reason for why people are pulling off from BTC.

The china crypto warning is considered one of the reason.  Reportedly, the price of BTC has been dipping since February.

The assumed china crypto warning is derived from:  “People’s Bank of China reiterated that the digital tokens could not be used as a form of payment.”

PBOCs officials have stated that virtual currencies are not real currencies and they cannot be used in the market.

Long before in 2017, Beijing has banned initial coin offerings, and they clamped down several virtual currency trading in their borders. This, in turn, forced several exchanges overseas.

While many are panic selling, there are many who are panic buying.  Since BTC is down 40% from its all-time high, it looks more crypto-specific.

Any kind of drop is scary, whether due to the China factor, Elon Musk, or whatever.  Those who realize the fundamentals of BTC will know it is important to hold.  Recent retail investors don’t even realize that holding Bitcoin in times like these is what makes sense if you want to store value. Recent “investors” came into crypto for a quick profit, and they prefer to sell at a loss than holding digital gold.

Seasoned investors are like buy the dip and relax. Crypto is way big for anyone to bring it down to zero. For new people, don’t be scared; this happens in a bull market and will happen again. Take advantage of the market now and buy more if you can. You learn as you go—gazillions to all.