The current condition of the cryptocurrency market raises a series of questions from traders. For the third day, the industry is trying to revive Bitcoin and other cryptocurrencies, or simply watching the crash of the course.
The question of what caused the market to collapse and what cryptocurrency should do – makes the world crazy. And for this, The shark of the coin I found answers to all these questions and analyzed the history of the fall of the currency by minute Bitcoin.
The chronology of the fall from 14 to 16 November
Wednesday, November 14th Bitcoin breaks another 2018 fund. According to the data of CoinMarketCapat 11:34 UTC the rate of the first cryptocurrency has behaved stably, being at $ 6 365.
Nothing predicted trouble, but at 17:19 UTC an unexpected fall began, which lasted until 7:19 pm UTC, where the price of BTC remained in half-dead condition at $ 5,765. Thus, the capitalization of the brand is dropped to $ 102 billion.
After that, Bitcoin started to resist. In 20:04 UTC the currency shows vital signs, increased to $ 5 858. But still, the end of November 14th was not a happy ending. In 22:48 UTC a new record was set – $ 5 568.
If you compare data with an individual market, on a Bitstamp the price of the BTC has already dropped to $ 5 534, and on the Kraken – $ 5 510. Last two weeks, Bitfinex trades with Bitcoin more than $ 6,000 for each unit.
It turned out that November 14th was still far from the end of the fall of BTC. Second CoinMarketCapOn Thursday, November 15th at 17:04 UTC, Bitcoin shocked everyone with the $ 5 358 course. On Bitstamp the first cryptocurrency drops to $ 5 446, and on Bitfinex – $ 5 638. At this point, this is the most low since the end of October 2017.
The condition of the cryptocurrency market in the last year is unstable. It is accompanied by unpredictable highs and painful falls. But not only did Bitcoin abandon its price position on November 14th. Together with it, most of the other cryptocurrencies have arrived in a deep red zone. In this way, total capitalization decreased by $ 190 billion.
At the time of writing this article, on November 16, the condition of the cryptocurrency market is still in a critical position: the Bitcoin course stood at $ 5,500, and Ethereum has backtracked against the second place in Capital Ripple.
What caused the collapse?
Think about it, less than 24 hours ago, it was possible to sell the BTC to more than a thousand dollars. Probably, it is impossible to define the reason why "the foundation was flawed" under the cryptocurrency, since for the example it can be performed in a normal market. In digital, the effect is seen for the first time and only the reason becomes known.
Reason n. 1: contagious effect
Based on the past, the cause of the fall is psychological in nature.
For example, people are starting to massively buy cryptocurrencies or sell fanatically.
Reason n. 2: direct correlation
Every financial currency was anchored to its government, like the dollar, for the US economy. The cryptocurrency is anchored to the people, who are buying it or selling it.
Reason 3: influence of global Bitcoin
Ironically, but there is a theory that the general conditions of the cryptocurrency are influenced by Bitcoin. The value of the entire digital market is estimated at $ 182 billion, the $ 90 billion of which belongs to BTC. Most cryptocurrencies should be transferred mainly to Bitcoin, prior to sale.
And now imagine, that the sale of Bitcoin will simultaneously start several major players in the market. After this, the prices of BTC are lowering, and this causes more panic attacks: "Buy everything as fast as possible, while the price is low!" – this makes the course of growth.
What should cryptocurrency owners do: sell or wait?
It depends on the internal aspects of each owner. Even when the path is climbing, it still has falling cycles.
Who and how will it affect the rate collapse?
Cryptocurrency is the unstable tool. It is a decentralized system and does not have a management center. The digital currency should strengthen positions, so that it can provide accurate forecasts for the future. But it turned out that this fall will have no effect on ordinary users.
It can not be denied that in a consequence many crypto-businesses will close. Cryptocurrency exchange they are in the least risk area, as the number of transactions increases in such cases.
Above all, miners and mining owners will suffer the most. Since the profitability depends on the price of the extracted cryptocurrency. In recent events, it is clear that mining is an unprofitable business.
Subscribe to The Coin Shark Facebook news: https://www.facebook.com/coinshark/