Summary of the week of Bitcoin, what happened and what to do now?

Cryptographic space has recently suffered another major market crash and the situation has not improved for days now. The industry is struggling to start a new period of recovery, traders are confused by these events and do not know what to do, while the cryptocurrencies themselves continue to lose value.

Two important questions are asked over and over for days: what happened and what to do next? This is what we will explain now, and we hope to reach certain conclusions.

Crypto Market Crash in November 2018

The market crash started on November 14th and Bitcoin's value dropped to its lowest point in 2018. For most of the year, Bitcoin maintained a value of around $ 6.400. Its price has dropped below $ 6,000 just once, and even then, it did not go below $ 5,800. However, on November 14, it finally happened and BTC dropped to $ 5,500.

The decline came without warning and surprised many investors. Other coins followed, and the coin without a 10% drop in the first 100 encrypted became a rare sight. The entire market cap has declined by about $ 30 billion after a while, and the situation has not yet improved.

At this point, Bitcoin started to resist and managed to prevent the further fall. However, this did not last long, as the decline continued on November 15, when BTC hit $ 5.358. This was its lowest point since October 2017, and many have begun to speculate on what will happen next. Will Bitcoin resist or is it the beginning of a free fall that will take away all its value?

On November 16th, the situation began to change, but only slightly. While optimistic investors expected an increase in value that would return cryptos to their previous prices, nothing like that has yet happened. However, Bitcoin managed to resist again and return the value to $ 5,500 and above. During the chaos, one of the cryptocurrencies that managed to advance in one way is XRP, formerly known as Ripple.

XRP managed to replace Ethereum as the second largest currency by market capitalization. This is the third time in the last few months that has happened. While Ethereum usually resumed the place within a few hours during the first two events, this time, XRP is holding his for a few days.

The situation with Bitcoin and other altcoins remains practically the same even now, on 17 November. The current price of Bitcoin is $ 5,548, with a slight decline in the last 24 hours, while Ethereum was beaten by XRP. Now that we are aware of it, it is time to talk about the cause of all chaos.

Why did the market crash?

The answer to this is not as simple as a direct reason. Instead, there are multiple factors that have played their part in bringing the market to the state it is now. One of these factors is the behavior of the investors themselves. For reasons like panic, uncertainty and the fear of losing money, investors can start selling or buying massively, depending on the situation.

If combined with the fact that cryptocurrencies have nothing to support them and give them value except for people, if people start selling or buying, the value reacts.

Finally, there is the fact that Bitcoin is known to be the leader and the biggest influencer on the entire market. It holds half of the total market capitalization and, in more situations, it is even known to own more than half. As such, it influences other altcoins, which lose or acquire value with it.

Considering all this, it is not surprising that all the altcoins have fallen as much as BTC after the hard fork of Bitcoin Cash. The numerous rumors and expectations of a scandal during the BCH update of November 15 have made investors anxious and anxious for weeks, if not months before the event itself. All of this caused the market to collapse a whole day before the process involving BCH began.

In other words, it is not about cryptocurrencies: it concerns people. The fear of investors and the lack of trust in cryptography is what has brought it down.

What will happen next?

According to experts, the situation will change and the criptos will eventually return to the previous state of affairs. However, as for what to do now, this depends on each individual investor. Cryptocurrencies will continue to rise and fall in cycles, as they usually do. They are still very unstable, which is why high volatility is such a big problem.

While their system is decentralized and nobody is responsible, it also means that there is no one who can handle situations like this. In a moment, after the fear goes out, investors will start trading and buying coins again. Cryptos will strengthen their positions and the current decline will not affect regular operators.

Those that will probably suffer the most are businesses. and in particular the crypto-miners. The mining cryptos can be quite expensive, but this also depends on more things. However, since it is so expensive, the miners depend on the fact that the encrypted value is as high as possible. With a decline in value, their earnings could actually be lower than the cost of mining.