Chances are, if you have any investments in cryptocurrency at the moment, you may be asking yourself the same question as I: What The Hell Is Going On Here?!?!?! Well, that is a very good question, and I am going to take a stab at providing an at least mediocre answer to that question.
Over the weekend and into today, market prices have gone down dramatically. Last week I was feeling pretty good about my trading skills as my accounts were growing by an average of 3% daily. But now my total USD value has dropped by $25 USD. I know, not much by professional standards, but bad enough to screw us out of "Pizza Night" for yet another week. Oh The Tyranny!
Why is this happening? Actually I haven't got a clue. But if I had to take a stab at providing a half way intelligent answer, I would say we are seeing a combination of two things happening...plus a third. First, I believe we might still be seeing the after-shocks of the Ethereum Flash Crash going on. People's faith has been shaken and many have decided it's time to sell out and move on. Add to that the FUD in the Bitcoin community about SegWit 2X. While I think the adaptation of SegWit overall is a very good thing, the increase of the block size to 2 requiring a hardfork in the near future has caused concern in the Bitcoin community. This concern maybe causing some people to forget about Bitcoin and Altcoins in general leading them to sell out and put their funds in good old fashioned fiat currency. Sounds crazy, but I've actually heard some people talking this way. Lastly I think it is likely we might be seeing a price correction going on in the world of Crypto. We have had some very Bullish times in this space, especially in regards to the rise of BTC. But, after the Bulls have had their time to run, the Bears must later come out to feed. There is a natural rhythm that is always maintained in this regard. So what we have here might be seen as the perfect storm coming together to drive down the price of Bitcoin and most every altcoin as well.
So...is this the end of the world? Yes it is. And I think we should all join hands, sing Kum-ba-ya, and await the arrival of the Flying Spaghetti Monster. No...just kidding.
While I am very new to the world of Bitcoin, I remember how it was when I first got started. The price of a single Bitcoin was $400. Then the price went up to $500, then $700, and then crashed down to around $500 again. At that time I was wondering if I should continue to invest in Bitcoin, or just buy up hats. But after that the price began to recover to $800 and then rise up very rapidly to the $2800 level. And, while I was hoping that we would see $3000 Bitcoin by the end of this month, the current price of $2200 or so really does not look that bad in perspective.
So, with all this having been said, I am advising people not to panic. Given time all this bad news will be sorted out and we will see the markets recover. Until then, let's keep steeming along and wait for better days to emerge. The Bears have got to be replaced by Bulls eventually!
