So this morning I saw BTC over $8,200 and was expecting my recently purchased BCC tokens would be up as well but nope, BCC was down significantly.
More concerning, the Bitconnect Lending wallet and Bitconnect wallet funds were both frozen, preventing sale or purchase of BCC tokens on the platform.
What Happened?
Following a major sell off of funds by one or more parties within the Bitconnect platform the price of BCC fell dramatically. The sell off included over 18.7 Bitcoin, and 50+ BCC tokens within a very short time. The sell off lowered the BCC price from about $290 to about $256 per token. As a result the system froze sales and purchases to ensure the market remains calm.
The website explains why the wallets were frozen on their page and the following is an excerpt from that explanation:
"BitConnect has implemented volatility based circuit breaker to BitConnect lending and transfer system. The volatility based circuit breaker system applies while BitConnect Coin (BCC) cross 10% level of price movement. The volatility based circuit breaker is triggered by price swings in either direction."
What does this mean for investors?
Bitconnect price fell dramatically and that means one of two things, its time to panic, or its time to buy.
History in the stock market and in crypto has shown time and time again that panic selling is never the right move. Price dips and corrections are a part of the game and those ready to buy the dips are those most likely to win big. Selling in the red is just as dangerous as buying in the green.
And before you do anything with this situation, remember its a surprise that BCC funds were frozen however, this shouldn't be concerning since the same happens in the stock world following major event. Then after a period of down time the system returns and transactions start again.
Conclusion:
I suspect this situation represents an opportunity to buy BCC before a significant bump. That is my opinion.
BCC is valued currently at $277 on Coinmarketcap, down 7.48% as compared to BTC. What's more I think the price will dip further once trading is resumed because panic wont stop immediately, but following the dip I expect to see BCC rebound and that it will match BTC's percentage growth thereafter. That would mean approximately 7-10% bump in price within short order.
As always I am no expert, just a guy talking about crypto. Do your own research.
Good luck. God bless.