2 fundamental reasons why the crypto market is crashing.(my opinion)
There's been a lot of speculations on why the crypto market is crashing. What is going on now is merely just a "hiccup", much like when bitcoin drop from over $1500 down to $200. For those who panic sold loss BIG! Let history teach us that in panic selling you lose! Especially if you hold the major cryptos such as btc, ltc and eth you shouldn't panic, these cryptos will just go right back up in my opinion.
First reason why crypto market is crashing has to do with, you've guess it! Panic selling. Most of the panic seller are speculators/traders. Crypto markets crash because of inexperienced speculator/traders freaking out when price drops to a certain point and perhaps they have placed a "stop-loss" order which further causes other speculator/traders to panic sell.
Second reason why crypto market is crashing has to do with new ICOs I believe. An example of this would be Vertitaseum. Ethereum is required before you can buy Veritaseum. So when people want to purchase Vertitaseum they would go and buy Ethereum then they would have to liquidate Ethereum to get Veritaseum. The liquidation of Ethereum to acquire Veritseum is an example of how ICOs can cause a huge dip in price.
WIth the understanding of what panic sell and how some ICOs can cause drops in the crypto market you shouldn't panic!
Why do I say that these cryptos will go right back up? Well, if you have been paying attention to the financial world you will understand most people all over the world are trying to get out of devalued currencies and move to other assets. Not only that but you can clearly see that crptos aren't going anywhere. I am starting to hear more and more people talking about cryptos and shops accepting bitcoins. check it out :
https://steemit.com/yunk/@themevlog/convenient-store-that-accepts-bitcoins-check-it-out
photo shot with my Sony Cybershot DSC HX10V
Personally I just keep calm and HODL for the long term. If you sell due to panic or lack of knowledge of the future you will lose! This is not a financial advice, this is what I do personally.
Congratulations! This post has been upvoted from the communal account, @minnowsupport, by themevlog from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, and someguy123. The goal is to help Steemit grow by supporting Minnows and creating a social network. Please find us in the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.
If you like what we're doing please upvote this comment so we can continue to build the community account that's supporting all members.
I agree with you completely. I think, however, that the panic selling follows the ICO'S. People see Ethereum falling in price and panic sell.