As Bitcoin continues its downtrend, what should investors do?

The Downward Trend in Bitcoin Continues

Bitcoin was trading at around 75 thousand dollars on Monday, while some strategists warned that the recent wave of selling has not yet ended. The reluctance of investors to "buy the dip" is another factor supporting this view.

Recent Sharp Declines

The world's largest cryptocurrency, Bitcoin, fell to its lowest level since April of last year after a sharp decline over the past weekend. This situation caused it to close out its fourth consecutive month with losses. The drop coincided with the announcement by U.S. President Donald Trump that he would nominate Kevin Warsh to the Federal Reserve after Jerome Powell’s term ends in May.

Other Crypto Assets Are Also Affected

Ether and other digital assets also continued to decline, alongside metals like gold and silver that experienced sharp declines on Friday. Losses persisted on Sunday evening as well.

Market Sentiment Is Changing

With Bitcoin approaching the support level of 73 thousand dollars, an analysis by 10X Research stated, “current fund flows indicate a significant change in market sentiment.” The company's strategists noted that fund flows and positioning data emphasize that “investors are not yet positioned to buy the dip.”

Crypto Market Loss Since the Beginning of the Year

According to 10X Research, Bitcoin has lost over 12% in value since the beginning of the year, while Ether has declined by 23% during this period. The total cryptocurrency market has experienced a market value loss of about 1.7 trillion dollars, or approximately 39%, compared to its peak last year.