The value of the market has fallen by $130 billion in the last 24 hours.
According to data from coin metrics, the price of the digital currency fell below $34,000 Monday morning. The price of ether is now $2,373. When the two leading cryptocurrencies hit their all-time highs on November 10, they were worth around $69,000 and $4,878, respectively.
The Federal Reserve indicated at its December meeting that it might start to reduce its balance sheet, dial back its monetary policy support and possibly raise interest rates.
The current plunge is not unusual for the market.
The CEO of Onramp Invest tells CNBC that downturns like this are normal. If you have the means, you should work with an advisor to guide you through these markets.
Ross says to not watch every tick of the price during times like these. Look at how the last year or two has gone for the digital currency.
Experts agree that a buy and hold strategy is the best way to go if you already own it or are planning to buy it. This strategy promotes holding an asset long-term and riding out the highs and lows rather than attempting to trade in the short-term.
Anjali Jariwala is a certified financial planner, certified public accountant and founder of Fit Advisors. She says that if you are committed to a strategy that involvescryptocurrencies, then you need to be comfortable with holding onto the investment for a longer term approach and try to resist the urge to sell when prices dip.
Don't let fear dictate your investment strategy. Discipline is key, just like any investment.
Douglas Boneparth, certified financial planner and president of Bone Fide Wealth, says that it is a good time to remember to invest in cryptocurrencies for the next 10 years. He has invested in the digital currency.
If you are feeling nervous or scared, take a deep breath, says Boneparth. It is better to focus on what you can control than on what you can't.
It's a good time to review your investment strategy.
He suggests asking the following questions.
Why did you buy it in the first place?
Do you still feel the same about it being down 50%?
Does this downturn affect your financial goal withcryptocurrencies?
Is your finances still sound?
Experts recommend keeping your portfolio allocation small with riskier assets. If there is a downturn, you won't lose everything.