The cryptocurrency markets are going crazy. Bitcoin dropped below $30,000, pulling back more than 50% from its high. Now, this is unleashing a storm of accusations, questioning, and calls for regulation.

Has everyone lost their minds?

Well, this is what happens when markets get scared. Many start to panic, believing the end of the world is coming. Of course, this is not exclusive to cryptocurrency. Look at what is happening in the equities market. Things are nuts there also.

The reality of the situation is the bear market will end. The problem is we have no idea where it will be. Could Bitcoin hit $25K? Most certainly. Is $20K possible? Without a doubt. Lower? Do not discount the thought.

Markets do some strange things especially when people are scared. Here is where some sensibility regarding one's approach is required.

Keep your head about you when others are totally losing it.

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Michael Saylor's Bitcoin Collateralization

Michael Saylor might be the lead lunatic, at least when the crash started. For a couple years, he was the darling of the crypto world. He was beloved by Wall Street for his entry into this new asset class. Of course, he was a favorite of the media and online channels.

All wanted to know what Saylor thought.

Now he is being intently questioned about the $205 million loan Microstrategy took out and used Bitcoin as collateral. Many of the investors are worried about a margin call now that the price of BTC is dropping.

Saylor is trying to put them at ease, telling all that it could drop to $4K before there is a major problem. If needed, the firm would post more collateral.

We are all just one bear markets away from traveling the path from hero to heel.

LUNA Sinking Like The Titanic

LUNA is now everyone's favorite whipping post. Actually, that falls to UST, which is pulling LUNA down with it. The peg was shot and now all are concerned about the world of stablecoins.

Things are so bad that LUNA dropped 32% in an hour. This is not good news.

Of course, when fear is in the air, everything is more sensitive to downward slides. Any move is going to be exaggerated. We also get the feedback loop as more people grow fearful the crazier things get.

Welcome to the world of markets. They are insane and this is proving it.

Does UST and LUNA have some issues? Yes they do. Does that mean that they are going to disappear? That is not likely.

Once again, something goes from hero to zero in a rapid manner.

There is a good chance that UST does regain its peg. It sucks that the drop was so great yet there is little to do when an attack that appears orchestrated takes place. Sometimes the only thing to do is weather the storm.

If the markets were holding up or in a bull run, few would even notice the UST situation. However, since everything is magnified, it is the end of the world.

Either Part Of The Problem...

Which side of the equation are you on? Are you going to feed the insanity some more or rise above it.

Here is where the proverbial rubber meets the road. We all need a plan for when rough markets arise. What? Don't have a plan? Why not? Did you expect the markets to keep going up forever?

Market corrections are as normal as advancement. Bulls are always met with bears. It is like Yin and Yang. No matter what takes place, this too shall pass and reverse.

So we either implement our plan or get crushed. Often markets are nothing more than an education about out pain tolerance levels. How much can you handle?

Naturally, it is better to decide this before the market crash hits. Unfortunately, few are prepared, either mentally or emotionally.

We will see greener days ahead. Markets do not go down forever. The same is true for the upside.

Notice how nutty people are behaving. Buffett said the time to buy is when there is blood in the street. Well we can start to see it building.

Not to offer financial advice but there is a chance that some long term positions are on sale. Perhaps it is time to think about them.

Either way, become part of the solution. Anyone who intends on being a part of cryptocurrency going forward best get accustomed to bear markets.

This is not going to be the last one you experience.

Welcome to the world of volatility.

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