Google+ Pinterest
We have seen major changes in the crypto market in the past couple of weeks with new coins appearing with every passing day and some dips and highs. But nothing was more flabbergasting than the astounding plunge Bitcoin went through and other cryptocurrencies as well as a result, and yet the bounce it got the very next day!!
But what is more intriguing here is that either ways, the plunge and the bounce have acted as a win win for certain investors. Before going on as to how, a little overview of what happened in the past couple of days; the soars and the dips an exciting mix for you on the platter. A dip down the lane
Bitcoin was trading at $11,000 , a fall of 45 per cent in five days.
It comes after a troubled week for Bitcoin, in which a cryptocurrency exchange went bust in South Korea following a cyber attack, knocking its price. Coinbase, another exchange based in the US, also said it was opening an investigation into sharp price increases.
Neil Wilson, senior market analyst at ETX Capital, said: “Has the bubble finally popped? It’s hard to see the bell tolling just yet.
“Large price swings have become so normal that it’s hard to decide – we can easily see this market bounce back in very short order.”
Bitcoin had rallied to a record high above $19,800 on Sunday and was trading near $15,500 for much of Thursday New York time, according to Coinbase. But an afternoon selloff accelerated into the night, and bitcoin dropped 30.2 percent Friday morning to a low of $10,400 on Coinbase. It had recovered above $14,600 by Friday afternoon, off 27 percent from the all-time high.
There were no immediately apparent explanation for the selloff and extreme volatility.
Earlier this week, Coinbase suspended trading for Bitcoin Cash, a fork of the original bitcoin currency created in August, while it investigated possible insider trading by employees when the currency was added to Coinbase’s exchange.
Friday’s fall prompted three exchanges to halt trading. One, Coinbase, said buying and selling was disabled as a result of technical problems caused by high traffic.
It later reopened trading as prices recovered to above $13,000 (£9,700) .
The drop, which also affected other cryptocurrencies, is believed to be a result of panic selling amid speculation that the bitcoin bubble could be about to burst. The ones which fall shall Rise
Yet, within merely 24 hours after experiencing a major correction during which every single cryptocurrency in the market plunged in value, the cryptocurrency market has completely recovered.
Today, on December 23, all cryptocurrencies in the market from bitcoin to the top 100 cryptocurrency have surged in value. Specifically, Bitcoin Cash recorded the largest gain in the top 20 cryptocurrencies with a 52 percent overnight price increase.
Others including bitcoin, Ethereum, Ripple, Litecoin, Cardano, and Dash have all increased by more than 20 percent .
On December 22, prior to the recovery, several analysts including Alan Silbert and Robert Reid noted that throughout 2017, the price and market valuation of bitcoin have fallen by more than 30 percent on six occasion. After each correction, bitcoin recorded a significant gain in value.
A shocker, isn’t it? Nevertheless, as long as people benefit, a dip or a soar anything can happen.
What’s in it for you
Well before going into the delicate details; let me be clear and simple. The plunge, although very shocking, came as an opportunity for those who wanted to buy Bitcoin, but couldn’t do so due to the skyrocketed value. Similarly for other crypto coins Litecoin, Ethereum and others the same thing applies, for the investors instead of selling away the currency, opted to buy more, taking full advantage of the plunge.
And this only, in the end, resulted to benefit them, since the cryptocurrencies regained their former glory and value within 24 hours of the nasty plunge.
The value of Bitcoin and other cryptocurrencies is nothing if not volatile but long time holders will know that the currency recovers from quite steep corrections.
For very recent investors the recent dip will be a shock I imagine but should hardly have been unexpected.
The value of these cryptocurrencies is in the blockchain tech and the fact that it is anti-inflationary and beyond the control of banks and governments. Expect some pretty vigorous reaction from those institutions as they begin to see Bitcoin and others start to reach the level where it impacts on their control. I imagine they will try and shut down exchanges and the flow of funds from fiat currencies to buy Bitcoin, Litecoin etc.
But then again, only time would tell the inevitable future and what it holds for the crypto world.
Share this: .
