Cryptocurrency Dip | What caused it and how my portfolio is holding up

courtesy of bitcoinInvestr.com

 I woke up today to news of Bitcoin dropping from USD54,000 to $46,000 before recovering back to the 50,000 levels. All these happening while I was deep in my sleep. Wow, what an exciting night for those who experienced through it all. Of course, when I woke up and opened twitter, I saw news of what had happened and my mum even forwarded a CNBC article to me.

So this was kinda what caused the dip:

Elon Musk have been pushing for Dogecoin which has driven up it's prices by tremendous amount and increased the wealth of many. But with the above tweet, he has also wiped off $365 billion off the cryptocurrency market as not just Bitcoin has been affected but other cryptocurrencies have also dropped in value.

I think it's important to still know fundamentally why you invested your money into Bitcoin or any other cryptocurrencies. I would say that the drop in price really was substantial and I was actually not looking at it and when I came to know about the news, the price had more less recovered to the $50,000 levels. As you can see from the charts, when it dropped to $46,000, there was huge buying which pushed it's price back to $50,000.

Besides the cryptocurrencies experiencing a drop, the stock market has been in the red as well this week with Tesla hitting a low of USD587. It is a time when the market test who will sell due to the pressure of gains being wiped out and seeing your portfolio value drop and drop. I havent been through a huge dip and this might be the time where the market will test if I can hodl onto my stocks and crypto holdings. The gains in my stock portfolio have dropped from 12% to about just 4.1%. Although overall, my portfolio is still in the green, lots of gains have been wiped off. I have added some positions to my portfolio due to the regular savings plan as well as individual purchases. My crypto portfolio is still holding out all right as my average buying prices are low for both ETH and BTC. I am planning to do a portfolio review soon to show how much my portfolio has dropped compared to my Q1 portfolio figures. Will provide an update again, in the meantime, HODL!