Blood In The Streets: ALL CRYPTOS CRASHING HARD!!
The markets are going CRAZY!
The last few days have been a tumultuous time for crpto investors as they have been watching their all times highs evaporate back into the depths of obscurity as Bitcoin plunges to below $10,000 for the first time in weeks, representing over 50% sheered off the behemoth's high of over $19,000. Almost all coins have been affected by the downturn including the 2nd largest crytocoin Ethereum. Among some of the other losers are Bitcoin Cash, Litecoin, Ripple and EOS - all down over 15%. Even Steem Dollars are down 16% to just over $3 each - a far cry the $15 high it was at just a few weeks back.
Financial news outlets are covering the story very closely, with many speculating that South Korea's clamp down on exchanges is the catalyst for the downturn. Some detractors are saying that this could be the end of the Bitcoin "Ponzi Scheme" , however many others who are more familiar with the space blame the crash on overly inflated prices and were expecting to experience a selloff eventually. As the old adage says... what goes up , must come down. Is it a good time to pick up some more or is there still plenty of room to fall?
More Bad News
As if that news wasn't bad enough - Bitconnect, the highly controversial crypto lending site has closed down - but not the way many were expecting. Though many fervently dubbed it as scam and a ponzi scheme with impossible returns of nearly 1% a day, they did not just dissapear the way BitPetite, and other popular lending sites that shuttered unexpectedly. Bitconnect has a different story . They recently unveiled a new exchange with and a new coin called BitconnectX and will be operating from new exchange and shutting down the old one. They did give warning to their investors , however the site is difficult to navigate and the exchange is unavailable, likely because investors are rushing to get off the sinking ship. Some have reported being able to liquidate and transfer their assets while others say they cannot get into the site or the exchange.
Was it really a scam?
While some people feel vindicated by Bitconnects closure - saying that they "knew" it was a scam that would take peoples money, fans of the site still claim to have not taken any losses and received their funds back, which is true. The problem is that they received their funds in Bitconnect ( BCC) and since the lending site is shutting down - there is no longer any use for the BCC coin and it's price is plummeting - ironic considering that just two days ago when the entire market was down - they were one of the only coins to maintain their value and even experience an increase. Perhaps they could have avoided this problem by letting people buy Bitconnect X with BCC - then their coin would still have a use case.
Conclusion
A lot of news is happening in the crypto world so keep checking back to see what is going on. I suspected that there would be a correction for weeks now - when it was at $19k - it was obvious that it could not sustain and it did't - but there is still plenty of room to grow and this correction is normal for all markets that get ahead of themselves - we are likely to see prices like this again over the next 6 months. Did any of you sell off your BTC at the top or did hold on to it as it slowly drained out of your wallet? I moved some of mine to other cryptos while it was so high ... but that didn't help much as all of them followed BTC down -so are you going to add to your account or sit back and watch?
Let me know what you think about this crash - are you scared? are you indifferent? are you snatching up more while it's down? Tell me about how you are dealing with the fallout in the market.
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I always upvote comments to my blog posts
Nice article.. I am staying patient. We've seen this time and time again. I think that this "crash" is just shaking the weak hands off. I think prices will rise gradually over the next month and all will be back to normal for now.
I feel the same , this is normal - you see this alot - especially in the stock market - this is typical market activity and you're right - this will shake out the weaker ones and give us a good support to build off of.
Bitconnect seemed weird to me. I didn't like the premise, didn't like how they ran things, and in the end, I was right. It was all for naught. Glad I didn't put any money in...
I had some money in , but I got it out and invested it in to Ethernet and other crypto .. ironically... the value of it has gone down significantly since then.....
Sounds like you're one of the lucky ones...
Its really only a crash if you sell at these lows after having bought at the highs. Those who sold at the highs can buy back in at these lows and increase their position and potentially double their money going forward. Its all just part of the natural cycle.
I agree - I have even stated before that I have never lost any money in crytpo because I have never sold anything at a loss - I Just held on to it. Though I did shuffle some things around during market increases... much of my $1800 btc went into litecoin, bitcoin cash and , and few other "penny crytos" I'm not concerned at all about this downturn -
Nice article, good info and insight. Upvote and follow. Keep it up...
thank you very much! I really appreciate your feedback. I'll take a look at your blog too
They are really holding down this time... Might take some tree shaking before we move up.
I think it is better for it to grow slowly anyway - extreme price upticks like we saw undermines the integrity of the coin and gives it a stronger air of speculation versus an investment.
It does and cause people to over leverage with debt from the greed. Then it is bound to burst at some point.
This post has received gratitude of 1.18 % from @appreciator thanks to: @jorlauski.