If like me, you've been glued to CoinMarketCap as this utter madness has been taking place.
I've seen some crazy things over the last couple of days, but what does it all mean ? and what will happen to cryptocurrencies?
Personally i think there are a few reasons (although no one really knows) why we have seen the market drop like it has.
The main reason i feel, is in short, people shitting themselves. They see the price has dropped a bit and begin to cash out causing ripples that turn into huge waves crushing the market. The next most probable cause in my opinion is the upcoming decision Bitcoin will face on august the 1st, where they will need to address how to solve the scaling issues that Bitcoin is currently experiencing, i wrote a short post about this that you can check out here if you want.
I also feel there are other factors at play like the recent disappearance of the dark web marketplace Alphabay, which used to move huge volumes of crypto. With all the people using these types of services completely in the dark as to whats happening the best thing they can do to protect their capital is to cash out.
And then there are the (by now many) whales. Just stop for a minute and look at the total market cap for cryptos over the last 12 months.
If you had put $100 into bitcoin in 2010 you would currently have over $3,000,000 and for these lucky people the market fluctuations are huge and it doesn't take many to get scared and sell off their coins for it to add to the price drop.
Personally i think we will continue to see the market decline further still until it reaches its lowest around the end of July as we get close to BIP-148, we will see a flat market for the last few days as people who are left don't really know which way to turn, followed by a recovery after the Bitcoin scaling debate is brought to its conclusion on the 1st August.
This will take a couple of months but after all is said and done i truly think we will start to see new all time highs, but like i said i don't think it will recover anywhere near as quick as it exploded.
Let me know your thoughts on what you think about this madness !
