CRYPTO CRASH!!! – WHAT IS CAUSING IT?
We all know that Cryptocurrencies are notoriously volatile, meaning that their value can massively fluctuate at any given time up and or down. Today is an example, crypto market took a hit and lost over $30 billion.
#1 WHAT INFLUENCES CRYPTO PRICES?
As most of us know, the price of cryptocurrencies normally goes up and down in line with news events. In fact, as you might have noticed whenever there is good news, ei a big group signing a partnership with a blockchain company, that crypto’s price goes up. Consequently, when negative news hits the papers, prices go down and today makes no exception.
Also, do not forget that the simple act of buying and selling cryptocurrencies can drive the price up or down. This has to do with the supply and demand of the market.
#2 WHAT CAUSED TODAY'S CRASH?
1. The first sign came as early as last week, when the South Korean government announced it will consider regulating and even banning cryptocurrency trading.
2. Chinese central government is working to drive out the country’s bitcoin mining community.
#3 WHAT'S NEXT?
All I can say is that it is almost impossible to anticipate where the prices will swing next, but I strongly believe cryptocurrencies are here to stay.
#4 HOLD, SELL OR BUY?
Today’s move can be explained by a massive sell-out driven by fear of a complete breakdown of the cryptocurrency market. The move to sell, chosen by many traders today, does nothing but hurt the market even more, as more and more people add downward pressure to the market.
However, as this massive sell-out was based on news events, we believe the prices will correct over the short term.
Me personally, I am buying for as long as the crypto are on sale.
Good luck guys!
this is not financial advice and I am not a financial adviser
