Bitcoin’s legendary history of collapses
Bitcoin price has dropped 64.5% since December 17, 2017. The industry’s total market cap is currently only $338 billion. A picture says a thousand words:
This is a huge drop for any market. However, a price drop in Bitcoin is nothing new.. Bitcoin regularly dies and regularly comes back to life. One website wrote that Bitcoin is counting 249 obituaries since 20102.. 2017 was the year that led the way with 109 obituaries, but we all know the 2017 performance.
Why Is Bitcoin Suspending Collapses?
A lot of bad news in a row during this period has caused a big shock in the crypto economy. caused the decline. Bitfinex has drawn the ire of the US Commodity Futures Commission because the exchange offers users the option to peg their currency to the US dollar.. The questionable thing about this is Bitfinex was unable to prove that they have enough funds in their bank account to back up and sell USDT ie tether.
In another market, India’s government is tracking cryptocurrency trading. The country’s government is scrutinizing multiple exchanges to try to generate tax revenue. Estimates show that the market has surpassed $3.5 billion in trading volume in India in the last 17 months to 2018.
And South Korea is next. The country has no intention of completely banning cryptocurrency trading. But the government has taken steps to declassify the equation’s name. South Korean merchants now have to use their real names. All this contributed to the crypto bloodbath.
By the way. Dow Jones Industrial Average slumps to lowest level in just three weeks amid rising US government bond yields. It’s not just the crypto market that’s feeling the fire. So is the world of Fiat.
Where is the solid ground?
Even the newest traders are aware of the old adage ‘buy low, sell high’. The real question is, when is low low enough? The truth is nobody really knows that. In the chart above, Bitcoin’s worst crash ended in January 2015 and lasted 411 days.. The nose dive sent bitcoin price bottoming out 87%.
As of today, the price has dropped 64.5% in the last 51 days. If this was on the stock market, media outlets would say 2008 happened again. Undoubtedly, the global economic crisis about ten years ago was largely caused by the American government’s condonation of distributing mortgaged homes to consumers who could not actually afford to pay for their homes.
Increased regulation is the reason for the collapse in the cryptocurrency industry. This is definitely bad news for short-term investors.. However, over the long term, regulation is seen as a necessary step in the ongoing fight to legitimize the cryptocurrency industry and bring it further to the point of mass adoption..
Whatever your investment vehicle of choice, good luck on the rollercoaster you are riding.
Source: CCN
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