When your crypto investments drop in value, smart strategies matter more than quick reactions.
If you’ve checked your crypto wallet recently and saw red numbers everywhere, you’re not alone. When your crypto portfolio “turns red,” it simply means your investments are worth less than what you paid for them. You’re currently at a loss.
This can feel scary, especially if it’s your first time experiencing a market downturn. But here’s something important to know: market dips are entirely normal in the crypto world. Bitcoin, Ethereum, and other cryptocurrencies are known for their dramatic ups and downs.
The good news? Staying calm and following smart strategies can help you avoid making costly mistakes during these tough times.
Let’s explore nine practical things you can do when your portfolio turns red.
Understanding Volatility
Crypto prices move up and down much more dramatically than traditional investments like savings accounts or bonds. This is called “volatility.” Think of it like a roller coaster — there are thrilling highs and stomach-dropping lows, but the ride doesn’t stop at the bottom.

Market participants are eagerly anticipating at least a 25 basis point (BPS) interest rate cut from the Federal Reserve on Wednesday. The Federal Reserve, the central bank of the United States, is expected to begin slashing interest rates on Wednesday, with analysts expecting a 25 basis point (BPS) cut and a boost to risk asset prices in the long term.Crypto prices are strongly correlated with liquidity cycles, Coin Bureau founder and market analyst Nic Puckrin said. However, while lower interest rates tend to raise asset prices long-term, Puckrin warned of a short-term price correction. “The main risk is that the move is already priced in, Puckrin said, adding, “hope is high and there’s a big chance of a ‘sell the news’ pullback. When that happens, speculative corners, memecoins in particular, are most vulnerable.”Read more

