January 2025 Bitcoin Price Drop: Should You Sell or Hold?

TL;DR:

Bitcoin has experienced price drops in January in some past years (2014, 2015, 2017, 2021).
However, this is not a guaranteed pattern and the cryptocurrency market is highly volatile.
Past performance is not indicative of future results.

Disclaimer: This information is for general knowledge and informational purposes only and does not constitute financial advice.

Bitcoin has been making waves this January, dropping from $102,000 to $91,000 in a matter of days. For moms juggling family finances, this sudden dip might feel like a red flag. If you’re a mom who’s invested in Bitcoin, you might be asking, “Should I sell before it goes to zero?” Let’s take a few deep breaths and unpack the fears surrounding this dip.

Fear #1: “Bitcoin Is Going to Zero”

Back in 2018, my friend Sarah called me, she’s sobbing, convinced Bitcoin was crashing to zero and already planning to sell at a lost. Fast forward to 2021, Sarah couldn’t believe her eyes when Bitcoin soared to $60,000. She often jokes about how she almost sold everything out of fear.

Stories like Sarah’s remind us that while these dips feel dramatic in the moment, they’re often just a part of Bitcoin’s natural cycle. Bitcoin may stumble, but it doesn’t stay down for long. Historical data proves this time and again. For example:

January 2018: Bitcoin dropped from $14,000 to $10,000. By 2021, it hit $60,000.
January 2022: Prices fell from $47,000 to $37,000 but rebounded strongly in 2024.

Bitcoin’s volatility is part of its nature, but its long-term resilience is why many investors continue to hold on.

Fear #2: “I’ll Lose All My Money”

When prices drop, it’s easy to imagine your investment disappearing. But remember, you don’t lose money until you sell at a loss. Bitcoin’s price is driven by supply and demand, much like toy prices during the holiday season. When a popular toy is in high demand and there’s limited stock, the price skyrockets. After the holidays, when demand eases and supply stabilizes, prices tend to drop. Bitcoin works similarly, with demand and supply dictating its value. Right now, macroeconomic factors like rising interest rates and profit-taking are causing fluctuations—temporary forces, not signs of collapse.

Fear #3: “What If I Need the Money?”

This is a valid concern, especially for moms managing households. The key is not to invest money you can’t afford to set aside for the long term. Think of it like saving for your child’s education—you wouldn’t put that money into something that could fluctuate wildly right before tuition is due. If you’ll need your investment soon, consider setting aside a portion in more stable assets while keeping some exposure to Bitcoin’s potential growth.

Why Moms Might Be Selling

Here’s what’s driving some moms to sell their Bitcoin right now:

Fear of the Unknown: Scary headlines about Bitcoin’s “collapse” might push people to panic-sell.
Immediate Financial Needs: Rising living costs mean extra cash feels safer than holding an unpredictable asset.
Market Noise: Friends, social media, and even well-meaning advice can pressure quick decisions.

Why You Don’t Have to Panic-Sell

Before you decide, consider this:

Bitcoin Is Still Growing: Even with dips, Bitcoin’s price today is far higher than five years ago.
Adoption Is Increasing: Businesses and governments continue exploring Bitcoin, supporting its value.
Educated Decisions Are Better: Selling out of fear often leads to regret. Learn about trends and Bitcoin’s history before acting.

A Practical Tip for Moms

If you’re feeling uncertain, try this: Keep a portion of your Bitcoin and sell a small amount for peace of mind. This way, you address immediate concerns while staying invested for potential gains.

Final Thoughts

Bitcoin’s recent price dip has understandably made some moms nervous. But before you sell, remember: Bitcoin’s story isn’t over. It’s okay to feel cautious, but don’t let fear drive your decisions. With the right perspective and strategy, you can navigate these ups and downs with confidence. Stay informed, stay calm, and remember—you’re not alone in this journey.