Cryptocurrencies, almost all of them seem to be down in Feb 2018.
The cryptocurrency game seems to be coming to an end. But is it really?
Bitcoin Which is the king of cryptocurrency has fallen down to 8,500$ as of February 2018. This price was once above 20,000$ just two months before. Along with bitcoin, other cryptocurrencies have also fallen like Ethereum, Dash Coin, litecoin etc. But why exactly do we see this sudden drop in prices of cryptocurrencies? and why is the crypto market down?
Well, this is in a word due to ‘market correctness’. What this means is that crypto currency’s market including bitcoin along with other cryptocurrencies are correcting themselves. What happens is as with any other stock, if the prices keep going high more and more new people buy the stock. In case of cryptocurrency it went so high that even the people who had no idea as to what bitcoin or other cryptocurrencies are, they just bought a huge chunk of it.
Now when the market settles as the number of people buying gets low and the number of people selling off increases. Then the decrease in overall prices of cryptocurrencies is what any experienced investor would expect. And that, in a nutshell, is what is happening, because the market of crypto currencies was so bloated by temporary investors that whenever the prices were to hit low, they would have obviously sold out. And this impacted the overall market, thus reducing the stock price (or the price of the currency itself in case of cryptocurrencies).
So, as of right now the market is correcting itself. The huge number of investors in cryptocurrencies was like a bubble which had to pop at some point. And now after such a decrease obviously more inexperienced investors will apt to stay out of this investment. Only the big players (billionaires and huge corporate) will still decide whether to invest in cryptocurrency or not. And in the end, this will actually show the real slow and steady growth in cryptocurrency.
Cryptocurrencies have fallen
Almost every year, during the starting months cryptocurrencies seem a bit down. But nothing compared to this time.
More than 50% of a negative mark can be seen on the charts of top trading cryptocurrencies.
As we already know this is because the Crypto market is correcting itself. But does this mean that cryptocurrencies themselves have fallen in their integrity? In reality, it’s quite the opposite. You see this can happen with any kind of stock on the stock market. When too many shares are being purchased the prices go high. But when everyone is selling then the prices drop down significantly. In case of CryptoCurrency people have only been mostly buying more and more, as they after a year maybe they can potentially double their investment.
But when the drop is very apparent, people sell. It’s just how human nature is, we try to get out of a situation with an upper hand as soon as possible. And why not?
Since there is no guarantee whether the prices will ever be the same high again or not. It’s not really the people pulling out of this crypto trading to be blamed. However, investing in anything without proper knowledge can obviously lead to an alarming outcome.
So, in the end, whether the crypto market will ever be as high as it was before or even higher is really in the future. And making any kind of prediction is a shot in a dark, But by taking in account its history the past 8,9 years. This kind of fluctuations does happen in trading of cryptocurrencies time to time. And at this moment if you have already bought some Crypto be it Ethereum, Bitcoin or any other. It’s better to keep it, than selling it right now (if you are already in a loss).
As the market in a few months will be looking stable, and you might not be at a loss at that time in the future.