As the market continues to correct, the community continues to try and wrap their head around what’s happening.
We can’t stress enough that corrections happen all the time and they are a part of any healthy trading market.
This one is particularly bad and we speculate much of it is a result of the sheer volume of “new money” that pumped into crypto in hopes of getting rich quick, who then panic sold taking huge losses.
In the news: CNBC told people to buy BTC at $19k and walked people through buying $XRP at $3. We heard countless people tell us they wanted Ripple, Tron, and even Bitconnect. The writing was on the wall.
For those that haven’t heard, Bitconnect announced it’s ceasing operations - I believe that this alone is a huge reason for so much sell volume.
Bitconnect was recently valued at over $2.5 billion. At the time of this writing it’s barely over $30 million - the coin value dropped from over $300 to less than $5. There’s also no liquidity (no one is buying) so it’s not unlikely we’ll see Bitconnect hit $0.
The owners of Bitconnect have almost certainly been liquidating thousands of Bitcoin, while long term BitConnect supporters have been trying to liquidate millions of $BCC. Bitconnect’s drop alone wiped out 10%+ of the market. Let that sink in.
It’s also important to remember that as recently as November we saw the market valued at less than $200 billion. Ripple was $.40 $ETH was $300, Bitcoin was $6k!
Crypto isn’t dead and Bitcoin isn’t tulips. Patience pays, and we are in it for the long haul.
Our bounce target is around $8800. If BTC doesn’t bounce there, we could come back to those November levels across the market.