Very early this morning I was surprised by the news from my husband that the price of cryptocurrencies had dropped considerably, I asked him what was the reason, and he told me that apparently it was produced by the collapse of a Chinese real estate company called Evergrande.
The question I ask myself without being an expert in economics or cryptocurrencies is:
In what way could this Chinese real estate company have affected the price of cryptocurrencies?
I really ask myself this self-reflection question since many of us are used to cryptocurrency having a drop in prices for other reasons, among which can be highlighted:
News of fomo causing it to generate a massive sell-off in cryptocurrencies.
Regulatory news from governments has also caused the price of cryptocurrencies to drop considerably.
Tweets from Elon Musk badmouthing bitcoin which has triggered sudden drops in the cryptocurrency at the time.
There is one last reason I want to mention, although I know that for experts there are thousands of other reasons, however for analysts and specialists in the technical analysis of the cryptocurrency they know that it is completely healthy that cryptocurrencies have their corrections, for this many study and analyze various technical indicators that can predict the decline in prices of various cryptocurrencies.
From this last reason, I think that on the contrary in the cryptographic environment it was breathed that at any moment the price of cryptocurrency was going to burst with rising prices, however it had this sudden drop that I think contrasts with what many experts were predicting for these days.
Maybe I am wrong because I am not an expert in these matters, while it is true that the cryptocurrency market is very volatile and manipulated, and that the cryptocurrency can go up and down as it pleases, it is also true that it is difficult for me to understand that the collapse of a Chinese real estate company called Evergrande is the trigger for the collapse of the cryptocurrency.
I know many of you reading this post are experts in these matters, so I am eager to hear in the comments from you, what are the exact reasons for this crash?
For my part I think that, if indeed this collapse of cryptocurrency prices is due to the case of Evergrande, I imagine that the shareholders of the real estate company in search of liquidity to pay their debts had to sell large amount of cryptocurrency and therefore prices fell, however within my ignorance in the matter I may be wrong, which is why your opinion is very important for me and my learning.
I just hope that people who are holders of cryptocurrencies know how to endure this correction and do not fall into the nervousness of selling cryptocurrencies at a loss, for my part I just have to wait and continue logging my investment in cryptocurrencies.
Greetings friends and thanks for taking the time to read my concerns related to the crypto world.