Posted by Fred Lake

Everything You Need To Know About The Bitcoin Price Crash

Everything You Need To Know About The Bitcoin Price Crash

A sudden and a quite dramatic market meltdown occurred to bitcoin and other major cryptocurrencies. Bitcoin may have gained steadily for weeks but it dropped in price by more than $300 within an hour Wednesday morning. Following its lead is there, ripple, and bitcoin cash. Bitcoin in just 24 hours fell by $1000 Thursday morning.

It took a while for investors to find out the reason for the sudden price crash. However, analysts said that the panic selling also contributed to the fall of Bitcoin’s value.

Goldman Sachs may have also potentially caused the cryptomarkets significant crash because of the report about Goldman no longer wanting to establish a cryptocurrency trading desk.

The reason behind Goldman’s change of mind according to a report by Business Insider is due to existing uncertainty in terms of regulation. Sources may report it that way but it also appears that the bank is not sure in completely committing to crypto. The spokesperson of Goldman released a statement saying they haven’t reached a decision yet on the scope of their digital asset offering.

There were already reports of Goldman’s plans back in December 2017 although they never publicly announced it. It was that time when crypto was at its peak. Bitcoin’s value reached almost $20, 000 during a bull run in December and January. That was a record high and notably higher than today’s price of just under $7, 000.

In addition to the Goldman situation, people are also concern about the reports surfacing that EU is considering crypto to be regulated. A proposal is reportedly being prepared by the organization for the regulation of crypto exchanges and ICOs.

The regulatory concerns and the ongoing uncertainty around Bitcoin and the crypto from an investment perspective are facts. A lot of industries, however, believe that the stability of price has many advantages because it leads to a stronger focus on technology and product. This is a problem for banks like Goldman because their main goal is on just making money.

Oliver Isaacs, a blockchain investor, and advisor said in an interview by The Independent that the increased price stability of Bitcoin over the last couple of days haven’t happened for a while and this could mean there are more gains to come for the next following months. This was his view on cryptocurrencies prospects just hours before the crash.Some analysts, however, warn cryptocurrency investors to be careful about seeing recent gains as a sign of things to come short-term wise.

Matthew Newton, a market analyst from the online trading platform eToro said that it’s too early to call the increase of price as a true resurgence. In addition, he described the price as a yo-yo that has been going on for several months and it might not be right to treat this as a new dawn just yet. He advises traders to be cautious.

In addition, Matthew also encouraged investors to be positive because there are are a lot of great fundamental news about the development of cryptocurrencies today although it may take a while to filter through and have an effect on price.

In Spite of its highs and lows, bitcoin significantly showed immunity towards negative press in 2018 which had impacted the movements of the market in the past.

How Did Crypto Crash Affect Investors

Sean Russell invested his savings when cryptocurrencies plunged and said his paper losses on his initial investment have now reached 96%. Financial experts said the unexpected rise in prices in 2017 invited a wave of inexperienced investors including retail investors, students, housewives, even elders. The media played a huge role in introducing crypto as an opportunity of a lifetime according to Michel Rauchs, a crypto, and blockchain researcher who works at Cambridge Centre for Alternative Finance. These investors bought at the top and are now painfully suffering on heavy losses. People like Russel who had little-investing experience a sudden growth of investment in just a very short period of time but nothing could’ve had ever prepared them for what’s about to happen. The crash made professional investors and enthusiasts argue as to where will cryptocurrencies go after the plunge.

Fred Lake
Contact Member