Crypto bloodbath – An assessment of current price drop!

The last 24 hours were characterized by cryptobloodbath in the area of ​​the crypto currencies, Bitcoin itself had to accept a price drop of 24% in one day and stands comparatively well there. What can be the reason and light at the end of the tunnel? 

As explained, the market for crypto currencies had to “bleed” yesterday. Even if the picture on Coinmarketcap does not look so dramatic today, the only color there seems to be the red. Bitcoin itself has lost nearly a quarter of its value in 24 hours, with much of the other crypto currencies making the situation even worse. Those who put money into BitConnect, this currency can take a loss of value of 94%:

BCCBTC-e1516171466721

BitConnect Coin, however, is seen as an isolated case in drama; It has fallen into disrepute regarding various legal allegations anyway and now closed its lending platform.

Some reasons were briefly spilled out: China’s efforts to ban the larger trading of crypto currencies via centralized exchanges led many investors in China to exit.

In addition, short positions, certainly have their share in the fall of Bitcoin, after all, the sales volume yesterday was significantly higher than another day:

CME

Since Bitcoin has a certain standard function in the field of crypto currencies and many other Altcoins are measured in comparison with Bitcoin, this has led to a general price drop.

Possible seasonal reasons

For these reasons, a few seasonal reasons were raised in the community. In part, the Chinese New Year celebration was called; Similar to the pre-Christmas fall in prices, this would mean that many investors in China liquidate their investments or take profits before the New Year. Coupled with concerns over regulation in China, this could be a cause, although the 2018 New Year is only mid-February.

Dramatic dips in January occurred virtually every year:

Dips.png

In 2017, a certain regularity of dips in Bitcoin could be observed.

About every 60 days (of course, plus / minus one week) big fall in prices could be considered:

Dips_2017-e1516174534283

If this cycle is justified, it is expected on the one hand with a recovery, on the other hand, one should then leave his holiday in mid March.

Fundamental value of crypto currencies not attacked

Whether restrictive regulations in China, the stock exchanges of Chicago or simply regularities in the sales behavior brought the course to collapse: It must be noted that none of them attacked Bitcoin or other crypto currencies themselves. Neither has an algorithm been discovered that can be deduced from a public key on the private key, nor have the hash rates of known currencies collapsed. The decentralized networks continue to work – apart from BitConnect, whose value was fundamentally called into question by the suspension of the Lending Platform.

Accordingly, the fundamental value of cryptocurrencies has not been attacked. In other articles it was pointed out that to remain calm in the event of price falls is important. While such times are frustrating, they can also be used to revisit the “why” behind cryptocurrencies, reflect on the meaningfulness of the technique, and consider whether it has been impacted by price movements.

Let’s give Jordan Belfort, known by the movie The Wolf of Wall Street, the (last) last word:

So you listen to me and you listen well.
Are you down because of Bitcoins price-fall?
Good! Pick up the fiat and start buying!
Have you bought at Ripples all time high?
Good! Pick up the fiat and start buying!
Does DASH make you feel like a fuc** worth loser?
Good! Pick up the fiat and start buying!
Crypto rich!

The market is currently in the hands of those who are adversely affecting the market with Bitcoin futures and nervous people who are afraid of a ban in China or other regulatory measures. Stop Losses and Trading Bots, which further automate trading, are also contributing to the rapid development of negative momentum. Especially when important support lines are torn, a chain reaction can quickly be carried out on sales folders, which in turn lead to excessive falls in prices. In addition, the Chinese New Year or in general a big sales move to New Year is to consider – in addition to the mentioned 60-day cycle. As frustrating as the price loss is, with regard to none of these attacks can it be said that the fundamental value of crypto currencies like Bitcoin.

Now, we pursue the courses further in order to be able to strike again at a turn of the course.

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