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RE: The Bitcoin Update!
Your observation is nice but I think that there is much simpler reason for BTC drop. Market went too far too fast and many people cash out their gains and wait for this drop.
Your observation is nice but I think that there is much simpler reason for BTC drop. Market went too far too fast and many people cash out their gains and wait for this drop.
You spoke my mind succinctly! Couldn't have said it better @cicbar
It is absolutely true that price was up many fold without any reason. But people were still interested in purchasing at high price. The one point apart from all the regulation and hacking which I missed is that cryptocurrency is not like regular investment where investment is done by big agency, professional investors and venture capitalists. They have good understanding of the market and future. However, cryptocurrency is different. This is because most of the investors in this domain is common man who purchase cryptocurrency in hope to encash these in coming future when price will go up. However, common man don't have lots of money which they can live without. They are always nervous when price goes up or down. Any bad news like one of above spread in market which makes these people very nervous and they want to save their loss. So they sell their cryptocurrecy if market is going down. Similarly, if market is too high, these small investors thinks that they are done with current gain and lets sell whatever they have to make quick gain. They hope that price will come down again and they can purchase it later (just like trading which is very easy now a days because of easy interface in multiple exchanges like GDAX and Binance). So huge number of such small investors like us, we are always going to see great market volatility and most of those fluctuations will be because of the market news. Any sudden bad news can stop currently improving prices of cryptocurrencies.