As soon as bitcoin crossed 11k, there was a rush of investors either cashing in or looking to buy. The volume at exchanges surged. I was getting calls from my relatives if they should buy bitcoin. And finally the exchanges went down. I don't know if the price crash from there had any meaning. News started flying about 20% correction in bitcoin. I guess most of newbies got spooked. I was finally relieved. This was needed. With the action in last 2 weeks and so many newbies joining the craze without really learning the basics of bitcoin we needed this kind of spooky market action to shake the things out a little bit.
Why I do not care?
This has happened time and again and I guess most of the bitcoin investor know it already.
The price action had no meaning this time around as many big exchanges were not even operating.
It is good for all the newbies to understand how volatile the crypto space is. It is never good for any market if people see easy money and invest money without understanding the basics. Look at how altcoins were rallying in last few days. Some projects (without naming them) got into top 10 even when they have no implementation in sight for next 2 years.
For all those who are able to keep their cool in this period, let us hope that this wild action stops and more sane sustainable market evolve once CME futures kick in and there are even bigger volumes in bitcoin space. And I hope all the speculators in altcoins space learn a lesson and stop pumping a piece of paper with no implementation backing them.
