The markets are going CRAZY!
The last few days have been a tumultuous time for crpto investors as they have been watching their all times highs evaporate back into the depths of obscurity as Bitcoin plunges to below $10,000 for the first time in weeks, representing over 50% sheered off the behemoth's high of over $19,000. Almost all coins have been affected by the downturn including the 2nd largest crytocoin Ethereum. Among some of the other losers are Bitcoin Cash, Litecoin, Ripple and EOS - all down over 15%. Even Steem Dollars are down 16% to just over $3 each - a far cry the $15 high it was at just a few weeks back.
Financial news outlets are covering the story very closely, with many speculating that South Korea's clamp down on exchanges is the catalyst for the downturn. Some detractors are saying that this could be the end of the Bitcoin "Ponzi Scheme" , however many others who are more familiar with the space blame the crash on overly inflated prices and were expecting to experience a selloff eventually. As the old adage says... what goes up , must come down. Is it a good time to pick up some more or is there still plenty of room to fall?
More Bad News
As if that news wasn't bad enough - Bitconnect, the highly controversial crypto lending site has closed down - but not the way many were expecting. Though many fervently dubbed it as scam and a ponzi scheme with impossible returns of nearly 1% a day, they did not just dissapear the way BitPetite, and other popular lending sites that shuttered unexpectedly. Bitconnect has a different story . They recently unveiled a new exchange with and a new coin called BitconnectX and will be operating from new exchange and shutting down the old one. They did give warning to their investors , however the site is difficult to navigate and the exchange is unavailable, likely because investors are rushing to get off the sinking ship. Some have reported being able to liquidate and transfer their assets while others say they cannot get into the site or the exchange.
Was it really a scam?
While some people feel vindicated by Bitconnects closure - saying that they "knew" it was a scam that would take peoples money, fans of the site still claim to have not taken any losses and received their funds back, which is true. The problem is that they received their funds in Bitconnect ( BCC) and since the lending site is shutting down - there is no longer any use for the BCC coin and it's price is plummeting - ironic considering that just two days ago when the entire market was down - they were one of the only coins to maintain their value and even experience an increase. Perhaps they could have avoided this problem by letting people buy Bitconnect X with BCC - then their coin would still have a use case.
Conclusion
A lot of news is happening in the crypto world so keep checking back to see what is going on. I suspected that there would be a correction for weeks now - when it was at $19k - it was obvious that it could not sustain and it did't - but there is still plenty of room to grow and this correction is normal for all markets that get ahead of themselves - we are likely to see prices like this again over the next 6 months. Did any of you sell off your BTC at the top or did hold on to it as it slowly drained out of your wallet? I moved some of mine to other cryptos while it was so high ... but that didn't help much as all of them followed BTC down -so are you going to add to your account or sit back and watch?
Let me know what you think about this crash - are you scared? are you indifferent? are you snatching up more while it's down? Tell me about how you are dealing with the fallout in the market.
Please be sure to check out my others articles on real estate, investing , and cryptocurrency ( and some other random dog stuff)