You’ve probably heard the news about Bitcoin going up and down over the last few years. But whether you want to make a long-term investment or you’re just curious about how to use it, you have questions that remain unanswered questions like When will bitcoin crash again? or When will Bitcoin go back up? In order to answer those questions, we first need to answer some other questions about the basics of Bitcoin—and its place in the current economic landscape.
Why Are Bitcoins Crashing?
As it turns out, people don’t like selling something that they know is going to be worth less tomorrow than it is today. That basic concept of the bitcoin crash is the devaluation of currency due to an increase in supply—applies to just about everything.
There’s no magic reason why it should affect bitcoins more than your local currency, but since bitcoins are so new, most people haven’t learned how to separate their emotions from these types of price swings. And when things get volatile, even rational investors may sell at a loss simply because they do not know what else to do in an uncertain market.
What Caused This Massive Bitcoin Crash In Value.
For some, Bitcoin still serves as a volatile investment. However, for others, it’s a way to send payments more quickly and less expensively than traditional methods. Whatever your reasons are for holding Bitcoin, if you’re worried about its current value (and you should be), here are some things that may have contributed to the massive drop in value for Bitcoin: Government intervention. Regulators around world continue to put pressure on exchanges like Coinbase to shut down accounts associated with illicit activities like drug trafficking and terrorism funding. It doesn’t help that hackers recently targeted South Korean accounts – one of the most active areas of exchange – and stole $60 million worth of digital currency. Market manipulation: Manipulation often comes in two forms: illegal and legal.
How Long Before We See Another Major Crash In The Price Of Bitcoin
The short answer to your question is, It’s hard to say. While there are some factors that could affect how long it takes for bitcoin to reach its previous all-time high (or surpass it altogether), ultimately what happens with the price of bitcoin is based on supply and demand, market sentiment, and speculation. How long before we see another major crash in the price of bitcoin? Our best guess is probably not very long at all, but it also depends on a number of other factors that are out of our control or too difficult to predict. And that’s really where you want to be when it comes to investing in cryptocurrency remembering that nobody can predict exactly how any one investment will perform over time.
Reasons Why Cryptocurrency Prices are Down
The broader cryptocurrency market (Bitcoin, Ether, Ripple, etc.) has largely been driven by speculation, especially in 2017. When you take out speculation, prices drop to more realistic levels. This is why it’s important to consider other factors besides market price when evaluating cryptocurrencies; it’s possible one has real value while another doesn’t or that one will become far more valuable than another in time.
There have been hiccups with some blockchain platforms—plenty of them! Because these platforms are relatively new and unproven, they often experience technical issues that can be resolved over time but cause prices to dip until they do so.
Why Is the Price of Crypto Declining So Rapidly?
There’s no one reason that cryptocurrencies are experiencing a downward trend at present. Because crypto is still in its infancy, it can be hard to pinpoint what’s causing traders to move away from certain coins and tokens. One common thread between several currencies—bitcoin, Ethereum, etc.—is that they have all reached astronomical heights in recent months. Some suggest that could be making investors nervous about where they should direct their holdings now that the climb is over. The huge price fluctuations that followed could also be contributing to some of these losses, as savvy investors have used major dips to scoop up tokens for cheap.
Why Does Altcoin Value Go Up When Bitcoin Goes Down?
If you’re a cryptocurrency investor, there’s a good chance that you don’t want to hear anything negative about bitcoin. And yet, if you’ve been following news from China in recent weeks, there have been plenty of reasons to worry. Among other things, China has banned initial coin offerings (ICOs), limited cryptocurrency exchanges, and restricted online media from publishing crypto-related content. While these actions may seem to run counter to crypto adoption in China, it could be argued that they do more good than harm. In fact, it might even be necessary for the long-term development of cryptocurrencies. Here are a few reasons why bitcoin crashes can be a good thing for altcoins in general.
What Happens When There is Volatility in Cryptocurrency Markets?
Volatility has returned to cryptocurrency markets, and it has caught many traders off guard. The recent price movements of bitcoin and other cryptocurrencies have caused a number of people to panic and sell their holdings in an attempt to avoid losing more money. The reality is that volatility is just part of how cryptocurrencies work. While there is certainly a risk that prices will continue to drop, it’s also possible that they will rebound and move higher. It’s important for those who want to invest in cryptocurrency to take time to understand exactly what drives short-term price movements before making any decisions about how they will invest their money. (Hint: according to Warren Buffett, its all about following trends)