So, the market is down and currently testing all support levels.
Before I go any further this is my opinion and napkin analysis, and my thoughts. What I will definitely not be doing is selling, I'm going to hold! You don't lose if you don't sell.
No one can be sure what is actually happening, but we can deduce some information from the data available. The total market cap is down nearly 10 billion...Lot's of money leaving crypto.
Maybe some of the reasons for this down market:
- Major ICO investors are pulling money out after making huge returns very quickly. Not trusting the rate of crypto growth.
- ICOs might be paying staff, investing in infrastructure, marketing or just cashing out for now.
- Ethereum's congested network and scaling issues may have investors/developers looking into other smart contract platforms or waiting for the technology to mature; it is still premature.
- The false reporting of Vitalik Buterin's death may have aggravated any existing fears of the down market that investors may have had. This would likely only affect smaller investors.
- This downturn may also be an orchestrated sell down to flush out the little fish so the whales can come back in and scoop some nice deals, these games have been played for a long time in Fiat already. I know this sounds like a conspiracy, but only whales have this type of buying/selling power.
I think Ethereum will continue to drop some more (estimate of 20%), which is tough for investors butI think the developers and leaders of Ethereum will learn from this and come back stronger, ETH is going nowhere it is truly a revolutionary technology. Bitcoin has been through it's own fair share of growing pains and gets stronger with each iteration. As a side note, it doesn't look like the "flippening" will happen as soon as the "experts" say. Remember crypto is uncharted territory and a very volatile space, definitely not a space for knee-jerk reactions. Also, you don't lose if you don't sell.
I trust in Ethereum and Vitalik. Does he look concerned? :)
I feel like this picture is a perfect meme candidate and may see it many many more times down the road.
Thanks for reading!