In recent times, there has been serious panic among investors in Cryptocurrency due to sharp price deep caused by various factors. One of the major factor leading to bloody market is due to market "Correction".
What then is a 'Correction'
According to Investopedia;
A correction is a reverse movement, usually negative, of at least 10% in a stock, bond, commodity or index to adjust for an overvaluation. Corrections are generally temporary price declines interrupting an uptrend in the market or an asset. A correction has a shorter duration than a bear market or a recession, but it can be a precursor to either.
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What may have caused the Market corrections?
Apart from most companies selling shit coins and scams to the public which are basically pump and dump and or overvalued coins with no visible team and real project, for Mashable, the market corrections is likely due to;
-The onslaught of bad news regarding cryptocurrencies in the last couple of months. China has banned cryptocurrency trading in September. South Korea implemented stricter cryptocurrency trading rules this week. India's finance minister said Thursday the country's government will take measures against cryptocurrencies being used as payments
Moreso,
-There's also mounting doubt whether Tether, a cryptocoin that's pegged to the price of U.S. dollar and allegedly backed in U.S. dollars at a 1:1 ratio, is in fact a scam. Potentially scammy Bitconnect was shut down in January. Weeks ago, hackers made away with more than $420 million worth of cryptocurrency, stolen from Japanese exchange Coincheck. And a lot of prominent investors, from Warren Buffett to Peter Boockvar, recently expressed skepticism towards cryptocurrencies.
Add to that the fact that cryptocurrencies typically fare bad in January, and that the Chinese might be selling their coins ahead of the Chinese new year, and you've got a perfect storm of news that can cause even the most resilient cryptocurrency to plummet.
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Is there any future hope going forward?
The good news however is that with huge amounts of money invested in cryptocurrency and so much great brains and reputable hardworking folks backing up decentralized blockchain and Bitcoin known to always bounce back stronger after any correction and market deep, there has always been a ray of hope and good news. However, the recent market recovery came after the recent Cryptocurrency Senate Hearing Testimony with chairman of the Commodity Futures Trading Commission (CFTC), Christopher Giancarlo, and the chairman of the Securities and Exchange Commission (SEC), Jay Clayton, where CFTC is to Take 'Do No Harm' Approach on Crypto Regulation.
According to an article By LUCINDA SHEN published in Fortune, titled "Bitcoin Traders Are Relieved at CFTC and SEC Cryptocurrency Senate Hearing Testimony"
With major banks blocking customers from buying Bitcoin with credit cards and governments cracking down on cryptocurrencies, a Senate hearing on the topic Tuesday was a surprising respite for HODLers (hold on for dear lifers).
The Senate Banking Committee heard testimony from the chairman of the Commodity Futures Trading Commission (CFTC), Christopher Giancarlo, and the chairman of the Securities and Exchange Commission (SEC), Jay Clayton, on the potential dangers of digital currencies as investments. Their testimony, amid a crackdown on Bitcoin exchanges in China and South Korea, wasn’t as negative as many cyrptocurrency investors had feared.
As a result, Bitcoin prices rose to $7,650 on Tuesday, after dipping below $6,000 just a day earlier.
In his own remarks
“We owe it to this new generation to respect their enthusiasm for virtual currencies, with a thoughtful and balance response, and not a dismissive one,” Giancarlo said.
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Watch this
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After the hearing, the market started picking up and many haters who were spreading dooms day news are already worried that Bitcoin, Steem, EOS, Elyte (elyte.io) are bouncing back in speed. However, those haters forgot to understand one thing, Cryptocurrencies are here to stay for the longest term.
My advise
Never be in a hurry to jump into any new coin, Avoid scam and shitty coins with no visible team and products, avoid pump and dump coins, HYIP and concentrate on real coins with future like Steem, EOS and new comer Elyte (elyte.io) so as to secure your future.
My question is, do you agree that cryptocurrency is here to stay? Send in your opinions in comment section.
If you like my post, do kindly give an upvote, follow for more and resteem for others to learn.
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