Why Are Bitcoin & Cryptocurrency Prices Getting Hammered This Week?
I've been trying to do some reading on the topic but havn't really found anything that states why Bitcoin and crypto prices in general are getting hammered this week. Is it uncertainty and fear of a fork? I remember a few months back Bitcoin was going from $1200 to $800 back to $1100, back down to $900, and as soon as the talk of a fork ended prices surged to $2,800
I can understand why Ethereum pulled back, I think it just rose too fast too quick and had a pullback in the same way Bitcoin did back when it first hit $1200. I guess for the other cryptos maybe everything just moves in conjuction with Bitcoin.
Curious if something else is going on that I'm missing?
Anyhow, I'm far from an expert on cryptos, this is just a video I made trying to explain the current market, what I'm doing, and doing my best to explain things to my Youtube audience.
If you want to correct any mistakes I made or if you want to shed light on any of these topics please drop a comment below as I've referred my Youtube audience over here for the comments as I know we have a lot of people very knowledgeable about cryptos.
My guess would also be uncertainty around the forking. Combined with ETH blockchain issues during latest ICOs.
But, buy and hold and buy some more on the way ;-)
When crypto falls it comes down like a guillotine. Very nasty and unpredictable.
The price will go up again but first it will go down. Once prices go down enough I will be buying as much as I can afford.
I am on a learning curve too and no expert but you can readup my thought on the topic here though i think the muted conversations of over pricing besides the bubble brewing could be fingered in it. See https://steemit.com/cryptocurrency/@kolex/where-do-the-cryptocurrencies-go-from-here
Its probably related to potential forking issues ahead an the fact that price could not surpass $3,000 several times.
There will also be better days ahead.
The fork stuff has me concerned. I use Electrum and have read some guides and how to get your coins back on after a split and the shit is super confusing.
Let's hope there won't be a split then.
Some more detail about the ethereum price drop yesterday.
http://www.businessinsider.com/ethereum-price-falls-july-11-2017-7
Crypto as an asset class is known for its volatility due to its nascent status. So swings of 7% aren't really unexpected or surprising. In fact some fiat currency pairs can move just as much on a daily basis. As crypto currencies mature though, I think you will start to see more correlation between different pairings as well them reacting to macro rather than micro events.
Are you worried about a fork at all? Do you think things will actually split? I'm really confused by how to get your coins back on after a fork and claim both coins. I've read some guides but seems very confusing.
What we have coming up is a rerun of the BetaMax vs VHS argument. But I think there is a way through before we all have to pin our colours to the mast. The SegWit fork comes into force on the 21st and there will be a week in which the network decides weather it wants to adopt the new protocol. If the magic number of 80% is reached we avoid a hard fork. If it isn't widely adopted and UASF supporters dont back down then we will have a hardfork. As I remember when Eutherum split into 2, several exchanges temporarily run the two protocols and gave their customers an opportunity to choose which one to back. However there is no telling at that stage which one will win out, so there is risk in the whole process. I think that risk is leading to uncertainty at the moment which is what is feeding the volatility. Whatever coin you choose if there is a folk, the market will automatically reprice although its anyone's guess at what level. Its like a company splitting in two and relisting on the stock market.
Likely a mixture of FUD, uncertainty with the fork for BTC, and for ETH it is a correction as well as uncertainly regarding the switch to PoS and how the market with react to that. If you believe in the project(s), just hold long term and try not to read too much news on all the market swings (even if it's hard to resist heh).
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You must be new to crypto. Bitcoin prices dropping 3-7% is not "getting hammered"
Bitcoin less so than other cryptos but NEM went from 0.22 to 0.12. Some other cryptos have been getting hit hard as well. Also I've been in for a while I've held through large falls but to a new investor they are feeling nervous that they buy in and they are already down. Also I probably should h ave gone further back than a week but I'm sure the new money that got in at $2800 or higher is freaking out. I'm actually buying more.