Everyone is freaking out today all over the internet. So much FUD out there right now because bitcoin price is currently down to around 11k (at the time of this post). Well I am here to tell everyone to RELAX! And here is why.
Remember about 3 months ago bitcoin price was around 5k, well we are still way above that mark at this point.
You have to look at the total market cap to understand why this is happening. Current total market cap is 540 billion 3 months ago it was only 172 billion. If you look at the trends the market is always going to correct. Because the total volume of the entire crypto currency market is much bigger than it was 3 months ago, that means the corrections will be bigger. Make sense! Right now we are seeing market corrections of 300 billion but back in the day the entire market was that big.
Compare the rest of the crypto market(Altcoins) to how they are performing against bitcoin, NOT the US dollar! This to me are great opportunities to buy some altcoins really cheap while the market is down.
Reason for down market.
Asia still dominates in crypto trading by volume accounting for the vast majority of money flowing in and out. Coming up in 3 weeks Lunar new year so a lot of money flowing out of crypto to cover travel and holiday expenses for the new year celebrations, etc. Peoole have tendency to sell crypto before the holidays just like here in the US. (Just my speculation)
No mainstream media hype lately around bitcoin. So this leads to not as many new people joining the market and buying crypto. Also the speculators have faded and the people who bought at 19k are running scared and getting out of the market.
Reports out about China planning to ban centralized crypto currency trading. China’s clampdown on crypto currencies continues as financial authorities reportedly plan to block domestic access to trading platforms that enable centralized trading. China has shutdown exchanges and now they are trying to ban people on China from using foreign exchanges as well.
Hopefully this helps everyone to understand a little better the reason why the market is down. If your new to crypto think of this just like the stock market, it will always have ups and downs. But unlike the stock market the swings in crypto are more pronounced and appear to be very dramatic when in reality they are not.
If your in for the long haul then you have nothing to worry about. Even if your in crypto short term you shouldn’t be stressing out right now. Buy low and sell high. That is the most basic form of trading and all this says to me is that it’s a great time to buy!!
Love to hear your thought and feedback!!